Change is on the Horizon, and our Horizon will be Changing
by Erik Hayden, on Aug 12, 2021 11:29:28 AM
There’s something big underway in San Jose, and folks are taking notice.
Last week, the Silicon Valley Business Journal published an article under the headline, “Crane Watch: 5 towers that would help transform Downtown San Jose are moving closer to being built.” I was happy to see one of our projects topping the list.
“Urban Catalyst, one of downtown's most prolific developers, has filed formal plans with the city for its biggest project in the area — Icon/Echo,” wrote the SVBJ’s Matthew Niksa.
“The two-tower development is designed to encompass about half a city block on the west side of North Fourth Street between East St. John and East Santa Clara streets, kitty-corner from City Hall. One building — Echo — would include 300 apartments, while the other — Icon — would offer 420,000 square feet of Class A office space. Together, the buildings could eventually be home to more than 500 residents and 2,000 employees, Urban Catalyst CEO Erik Hayden said in a news release last week.”
The Icon/Echo development is one of our Opportunity Zone projects, and we are currently accepting investments. We previously raised $131 million for several other ground-up projects in downtown San Jose.
Of course, it’s not just Urban Catalyst working to revitalize downtown San Jose. The SVBJ article lists several of our developer colleagues who also have significant projects in the works.
“If they're all built, the structures would help remake San Jose's city center, adding hundreds of new residences and more than 2.75 million square feet of office space,” Niksa wrote in his article.
And that’s not even counting the elephant in the room—Google--which plans to build a huge mega-campus on the west side of downtown
This is an exciting time for downtown San Jose, and Urban Catalyst is thrilled to be a part of it.
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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.
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- 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.
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