Construction on Fund I Projects to Kick-Off This Year
SAN JOSE, Calif., Jan. 14, 2021 — Urban Catalyst, Silicon Valley’s leading Opportunity Zone Fund, today announced it raised $131 million in its first funding round to further transform downtown San Jose through the construction of seven ground-up real estate development projects. Fundraising concluded on Dec. 30, 2020, garnering 356 investors.
Urban Catalyst secured commitments from a diversified investor base including tech workers from nearby companies that accounted for nearly 75 percent of the investments in 2020. The Fund’s Opportunity Zone projects reflect strong investor interest in revitalizing downtown San Jose into a vibrant place to live, work and visit.
“During a year of extreme uncertainty, where we saw the stock market whipsaw like a roller coaster, our fundraising is an indication investors are looking to safely diversify into quality real estate,” said Erik Hayden, Founder of Urban Catalyst. “Now comes the important part of Fund I, and that is building quality projects.”
In late December 2020, Urban Catalyst Fund I closed escrow on its final property. Urban Catalyst Fund I continues to submit building permits for its projects and expects to start construction on all of its projects in 2021 and 2022.
“As we start construction, we intend to take advantage of lower costs that have hit the construction market because of the pandemic,” said Hayden. “We believe we will be delivering our projects into a recovering economy – in what could be this century’s Roaring Twenties.”
About Urban Catalyst
Urban Catalyst Opportunity Fund I LLC (“Urban Catalyst”) is a nationally recognized real estate equity fund focused on ground-up development projects in downtown San Jose. In 2019, Forbes and the Sorenson Impact Center recognized Urban Catalyst as one of the top 10 Opportunity Zone Funds in the inaugural Forbes OZ 20.