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San Jose buildings with mountains in the distance
Erik HaydenAug 29, 2022 3:35:45 PM6 min read

Downtown San Jose: The View From the Ground

When last seen, Urban Catalyst founder Erik Hayden was behind the wheel of a big orange excavator, breaking ground for the home of the future Gifford Place. Today, we catch up with him back in the office to get a view from the ground of what’s happening in downtown San Jose.

Q: What do you see that’s different these days in San Jose?

A: At the moment the most interesting thing might not be in San Jose itself but on the roads going in and out of the city. The traffic is back. Workers are commuting again. They’re coming back to the office.

And there’s something else: when the Golden State Warriors won the NBA championship in June, the atmosphere here was electric. The sidewalks were overflowing with people of all ages out celebrating. That level of street life is something new and it’s a good indicator for what we’re building.

Q: Speaking of building, how is Fund II coming along?

A: We passed the $100 million fundraising mark earlier this year, and we hit that 40% faster than we did with Fund I. That speaks to the opportunity investors are seeing in downtown San Jose. The city is excited about our flagship Fund II project, Icon/Echo and we are full speed ahead with the planning and approval process.

Q: What’s the key to getting people downtown?

A: Creating a livable city is part art, part science. You need to have compelling work opportunities and attractive places to live. Access to public transportation is important. But more than that, you have to build a place that’s sustainable and where people want to gather.

Retail activation is a great indicator for where a city is going. It signals excitement. You see this in the energy that’s building in downtown San Jose. You see it in the demand for housing and in the kinds of restaurants and entertainment venues that are signing up for our spaces in buildings like Paseo. There’s great momentum here.

Q: Anything else to add?

A: As an investor, you want to put your money in places that you believe have great growth opportunities and that are demonstrating positive momentum. You don’t have to look hard to see that San Jose is one of those places. Whether it’s U.S. News ranking San Jose #5 in its list of best cities to live or the crowds that flooded the streets following the Warriors’ game six victory, you can see this is a place on the rise. It’s an exciting time to be here.

Interested in learning more? Contact us today!


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;
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- 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;
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- 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.


Erik Hayden

Responsible for developing more than $3.5 billion in real estate projects, including over 2,300 residential units in the California Bay Area, Mr. Hayden has experience in acquisition, contract negotiation, due diligence, risk assessment, financing, construction, and disposition of multifamily, single family and large mixed-use and master planned developments. He maintains relationships with a broad network of property owners, enabling him to identify and acquire prime investments. Mr. Hayden also has expertise in navigating projects through the entitlement process by working with elected officials, community groups, and political organizations to gain support and get projects approved.