Behind the Investment: Erik Hayden on Urban Catalyst’s Approach to Opportunity Zones

In a new interview with Jimmy Atkinson, Urban Catalyst’s founder and CEO discusses downtown San Jose, development discipline, and the questions investors should ask before choosing an Opportunity Zone fund.

What should investors look for in an Opportunity Zone investment? For Urban Catalyst founder and CEO Erik Hayden, the evaluation starts with the real estate and the people responsible for developing it.

Hayden joined Jimmy Atkinson on the Opportunity Zones Podcast, recorded at the Novogradac 2026 Opportunity Zones Conference in Washington, D.C., to discuss Urban Catalyst’s development approach and the strategy behind its third Opportunity Zone fund.

The conversation covered why Urban Catalyst focuses on downtown San Jose, how the team evaluates potential development sites, and why experience matters in both real estate development and fund management.

Watch the full interview on YouTube:

A Fund Manager With Development Experience

Urban Catalyst brings two capabilities together: managing investment funds and developing real estate.

Founded in 2018, the firm initially planned to pursue a traditional private equity strategy focused on ground-up development in downtown San Jose. The introduction of the Opportunity Zone program added another dimension to that strategy, as much of downtown fell within designated zones.

For Hayden, the starting point was a market the team knew and a development opportunity it understood. The Opportunity Zone structure offered potential additional benefits for eligible investors.

That local focus continues to shape Urban Catalyst’s approach. Familiarity with downtown San Jose’s properties, owners, and development process helps the team evaluate where a project may be feasible—and when to pass.

How Urban Catalyst Evaluates a Site

In the interview, Hayden identifies several factors that can keep a property from becoming a viable development opportunity.

Land pricing is one. A seller’s expectations may leave too little room for a financially feasible project. Local development restrictions and the ability to secure necessary entitlements also influence whether a site fits the strategy.

Those decisions come before the potential tax benefits.

The underlying project must have a credible business plan, and its risks must be evaluated on their own merits. Opportunity Zone incentives are one part of that assessment; development costs, financing, execution, and eventual operating performance also matter.

Why Sponsor Experience Matters

Hayden encourages investors to examine both the proposed investment and the team managing it.

Among the questions discussed in the episode:

• What is the project, and what supports its business plan?
• What experience does the team have with the proposed asset class?
• Has the sponsor successfully managed ground-up development?
• What experience does the team bring to Opportunity Zone fund management?
• How does the investment’s expected timeline fit its financing and ownership structure?

Development and fund management require distinct capabilities. A team must understand how to execute the real estate plan while also managing the fund’s structure, obligations, and investor relationships.

The interview also explores how a long-term Opportunity Zone strategy can affect financing decisions. The anticipated holding period needs to align with the expectations of lenders and equity partners, making those relationships an important part of planning.

Maintaining a Focus on Downtown San Jose

As the Opportunity Zone program evolves, Urban Catalyst’s planned Fund III strategy focuses on multifamily development in downtown San Jose.

That direction reflects the firm’s experience with high-density infill development and its knowledge of the local market. In the interview, Hayden explains why the team intends to continue working within that area of expertise.

For prospective investors, the discussion offers context for understanding the strategy: the market Urban Catalyst knows, the development capabilities it brings, and the discipline it applies when evaluating potential sites.

To explore Urban Catalyst’s planned Fund III strategy and request a conversation with the team, visit Urban Catalyst.

This interview was recorded on October 29, 2026. Statements about launch timing, Opportunity Zone designations, and future plans reflect information available at the time of recording and may have changed.

For informational purposes only. Any offering is made only through applicable offering documents and is subject to investor eligibility requirements. Real estate investments involve risk, including possible loss of principal. Potential tax benefits depend on individual circumstances and applicable requirements. Consult your tax, legal, and financial advisors.

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.