Last Friday, we closed on the third of four parcels we need to start construction on our Fund II Icon/Echo projects, continuing the momentum that ran through the end of 2021. The fourth and final parcel is under contract and we plan to close on it later this year.
Whereas our Fund I raised money for six projects, Icon and Echo are the only two projects in Fund II. The residential structure, Echo, will consist of more than 300 units of multifamily apartments. Icon will have over 420,000 square feet of office space.
They’ll be built in a prime location along Santa Clara Street, the main drag of the central business district: just a short walk from San Jose State University, City Hall, the VTA light rail, and, perhaps most exciting of all, the coming BART station. This is what transit-oriented development and smart urban planning are all about.
The acquisition caught the attention of business reporters.
Referring to Urban Catalyst as “a busy development firm,” The Mercury News reported the property at North Fourth Street and East St. John Street is one of four needed for “an eye-catching development.”
The Silicon Valley Business Journal reported, “Located at 77 N 4th Street, the site is the third of four the developer needs to acquire to build a proposed two-tower office and residential development, dubbed Icon/Echo..”
Icon and Echo are all part of the major revitalization San Jose is undergoing as Silicon Valley tech companies migrate to the South Bay.
And this is just the beginning. Expect to see a number of groundbreakings for projects from our first fund. One of the Fund I projects–revamping the old Camera 12 cinemas into an office/retail center–is already well under way. We closed Fund I in December 2020 after exceeding our goal by raising $131 million.
Contact our team to learn more about our Fund II projects.
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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").
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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.
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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:
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- Potential for property value loss – All real estate investments have the potential to lose value during the life of the investments;
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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.
- 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.
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- 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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