The best part of being a developer is getting to play a role in the revitalization of a city I love. I can watch in real-time as our projects--once just ideas on a laptop--take form and breathe new life into downtown San Jose.
I recently took my team with me to one of our project sites so they could see the fruits of their labor.
We walked a few blocks to the site of our Paseo project, where we’re converting a long-closed movie theater into retail and office space. We put on our hardhats and toured the renovation in progress.
Only by standing inside that emptied cavernous structure can you fully appreciate the enormity of the project.
Construction at Paseo is expected to be completed by mid-2022. It is among six projects that are part of our Fund I, which closed in December after raising $131 million. We are currently accepting investments for Fund II, which will place new office and residential space in the core of downtown San Jose.
Here are a few photos from our field trip to Paseo, followed by a rendering of what the renovated building will look like.
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Real Estate Risk Disclosure:
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- 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;
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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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- 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.
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- 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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- 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.