Urban Catalyst team at the site of our future Senior Living Project Gifford Place, where we recently completed demolition.
Time flies, and in downtown San Jose the dirt is flying, too, as we move ahead with our Fund I projects, and lay the groundwork for those planned for Fund II.
Here are the latest updates for some of our Fund I projects:
- Last month, we broke ground on Gifford Place (formerly known as Delmas), one of the first new senior living facilities to be built in the downtown area in decades. Existing site structures have been demolished and cleared. We expect to start building in Q3.
- For another Fund I project, Paseo, we recently announced an agreement with Paper Plane Group to open “Eos & Nyx,” an exciting new restaurant concept. We are currently negotiating a lease for the final ground floor retail space and hope to have an agreement in place shortly. The focus for this project is now turning to the available office space upstairs. We’ll be putting in the elevators and launching a new office leasing website for this property soon, so stay tuned.
- TMBR, our multi-family project next to the planned Google campus and near Diridon Station, has signed a letter of intent with a potential equity partner and has applied for a permit adjustment that will allow us to increase the unit count from 184 to 271, reflecting the ongoing demand for housing in the region. We hope to have approval for these additional units by the end of the year with construction anticipated to start in mid-2023.
- The Mark, a student-focused high rise residential apartment building near the San Jose State University campus and adjacent to the very popular SoFA Arts District, is moving forward as well. We are close to finalizing a partnership agreement with a leading national student housing developer and hope to formalize it this month, with a construction start in Q2 2023.
- Finally, Icon and Echo, our Fund II projects. The City staff has signed off on the planning application and will be commencing a 45-day public notice period. We hope to receive discretionary approvals by Thanksgiving 2022 with construction anticipated to start by Q2 2023. It will include both multi-family rental units and office.
There is a lot of excitement in downtown San Jose as the dirt starts to fly. To find out how you can be a part of it, contact us today.
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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.
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