If you’ve been watching Silicon Valley real estate, you already know: San Jose is having a moment. From new hotels opening downtown to cranes coming back into the skyline, the city is seeing a wave of activity and Urban Catalyst has been right in the middle of it.
With Opportunity Zone Fund II (“Fund II”) closing at the end of 2025, this is the final stretch for investors who want to review this offering before it shuts its doors.
Here’s what made this year so pivotal:
Major 2025 Highlights Across Our Development Pipeline
Urban Catalyst hit several meaningful milestones this year, the type that show forward movement, momentum, and real activity on the ground.
- Aquino is officially under construction, marking one of this year’s biggest milestones and adding hundreds of new residential units to the downtown pipeline.
- Keystone (Marriott TownePlace Suites) opened its doors, becoming downtown San Jose’s first extended-stay hotel.
- Fund II projects advanced through critical planning, design, and city-coordination steps, keeping each project’s development path moving forward.
- Stakeholder teams, architects, and engineers remained active all year, refining plans and preparing next-stage work.
These updates reflect project progress, not future performance, and they tell a clear story: 2025 was busy.
Why Interest in Fund II Has Surged Going Into Year-End
Investors have been especially engaged in Q4, and the reasons are straightforward:
- Downtown San Jose continues to show strong multifamily demand, supported by independent market data.
- Housing supply remains tight, helping maintain interest in new development.
- Institutional groups and major employers continue investing in the region, reinforcing long-term confidence in Silicon Valley.
- Opportunity Zone tax incentives remain available for investors who act before the fund closes.
Fund II: Positioned in the Heart of Silicon Valley
Fund II includes a portfolio of projects located in downtown San Jose, one of the most supply-constrained and economically resilient regions in the U.S.
Here’s what stands out about the portfolio:
- Four projects across multifamily and hospitality, located within a concentrated walkable urban core
- Land ownership already secured for all Fund II sites
- One project already completed and performing ahead of projections (Keystone Marriott TownePlace Suites Hotel)
- Multiple projects moving through active development stages, including design and re-entitlement work
Everything is positioned inside a single Opportunity Zone census tract in the center of Silicon Valley, an area known for persistent housing demand and limited developable land.
Looking Ahead: The Window Is Closing
The end of 2025 is quickly approaching, and with it, the closing of Fund II. Investors reviewing the fund now are typically focused on:
- Securing Opportunity Zone tax advantages before the 2026 “dead period”
- Diversifying with real estate tied to one of the strongest multifamily markets in the country
- Participating in a portfolio with a completed project
- Joining a fund with multiple downtown projects already in motion
If You’ve Been Watching Urban Catalyst… This Is the Moment to Lean In
Whether you’ve followed our progress for years or you’re just now taking a closer look, this final stretch of 2025 is the time to evaluate Fund II and determine whether it aligns with your investment goals.
Urban Catalyst’s team is available for calls, material walkthroughs, and end-of-year reviews as the closing deadline approaches.
👉 Contact us to learn more.
Important Disclosures
The contents of this communication: (i) do not constitute an offer of securities or a solicitation of an offer to buy securities, (ii) offers can be made only by the confidential Private Placement Memorandum (the “PPM”) which is available upon request, (iii) do not and cannot replace the PPM and is qualified in its entirety by the PPM, and (iv) may not be relied upon in making an investment decision related to any investment offering by an issuer, or any affiliate, or partner thereof ("Issuer").
All potential investors must read the PPM and no person may invest without acknowledging receipt and complete review of the PPM.
With respect to any performance levels outlined herein, these do not constitute a promise of performance, nor is there any assurance that the investment objectives of any program will be attained. All investments carry the risk of loss of some or all of the principal invested. Assumptions are more fully outlined in the Offering Documents/ PPM for the respective offering. Consult the PPM for investment conditions, risk factors, minimum requirements, fees and expenses and other pertinent information with respect to any investment.
These investment opportunities have not been registered under the Securities Act of 1933 and are being offered pursuant to an exemption therefrom and from applicable state securities laws. All offerings are intended only for accredited investors unless otherwise specified.
Past performance are no guarantee of future results. All information is subject to change. You should always consult a tax professional prior to investing. Investment offerings and investment decisions may only be made on the basis of a confidential private placement memorandum issued by Issuer, or one of its partner/issuers. Issuer does not warrant the accuracy or completeness of the information contained herein. Thank you for your cooperation.
Real Estate Risk Disclosure:
- There is no guarantee that any strategy will be successful or achieve investment objectives including, among other things, profits, distributions, tax benefits, exit strategy, etc.;
- Potential for property value loss – All real estate investments have the potential to lose value during the life of the investments;
- Change of tax status – The income stream and depreciation schedule for any investment property may affect the property owner’s income bracket and/or tax status. An unfavorable tax ruling may cancel deferral of capital gains and result in immediate tax liabilities;
- Potential for foreclosure – All financed real estate investments have potential for foreclosure;
- Illiquidity – These assets are commonly offered through private placement offerings and are illiquid securities. There is no secondary market for these investments.
- Reduction or Elimination of Monthly Cash Flow Distributions – Like any investment in real estate, if a property unexpectedly loses tenants or sustains substantial damage, there is potential for suspension of cash flow distributions;
- Impact of fees/expenses – Costs associated with the transaction may impact investors’ returns and may outweigh the tax benefits
- Stated tax benefits – Any stated tax benefits are not guaranteed and are subject to changes in the tax code. Speak to your tax professional prior to investing.
Opportunity Zone Disclosures
- Investing in opportunity zones is speculative. Opportunity zones are newly formed entities with no operating history. There is no assurance of investment return, property appreciation, or profits. The ability to resell the fund’s underlying investment properties or businesses is not guaranteed. Investing in opportunity zone funds may involve a higher level of risk than investing in other established real estate offerings.
- Long-term investment. Opportunity zone funds have illiquid underlying investments that may not be easy to sell and the return of capital and realization of gains, if any, from an investment will generally occur only upon the partial or complete disposition or refinancing of such investments.
- Limited secondary market for redemption. Although secondary markets may provide a liquidity option in limited circumstances, the amount you will receive typically is discounted to current valuations.
- Difficult valuation assessment. The portfolio holdings in opportunity zone funds may be difficult to value because financial markets or exchanges do not usually quote or trade the holdings. As such, market prices for most of a fund’s holdings will not be readily available.
- Capital call default consequences. Meeting capital calls to provide managers with the pledged capital is a contractual obligation of each investor. Failure to meet this requirement in a timely manner could elicit significant adverse consequences, including, without limitation, the forfeiture of your interest in the fund.
- Opportunity zone funds may use leverage in connection with certain investments or participate in investments with highly leveraged capital structures. Leverage involves a high degree of financial risk and may increase the exposure of such investments to factors such as rising interest rates, downturns in the economy or deterioration in the condition of the assets underlying such investments.
- Unregistered investment. As with other unregistered investments, the regulatory protections of the Investment Company Act of 1940 are not available with unregistered securities.
- It is possible, due to tax, regulatory, or investment decisions, that a fund, or its investors, are unable realize any tax benefits. You should evaluate the merits of the underlying investment and not solely invest in an opportunity zone fund for any potential tax advantage.
The above material cannot be altered, revised, and/or modified without the express written consent of Urban Catalyst.
