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revitalized downtown San Jose
Erik HaydenJul 27, 2022 2:07:06 PM6 min read

What does Google know?

We’re all used to turning to Google when we’re looking for information. So what can Google tell us about what’s going on in San Jose? They must know something: the company recently announced a multi-billion investment in the city, adding further momentum to the ongoing revitalization of downtown.

I think they see what we see and what U.S. News saw with this year’s ranking of “Best Places to Live” when they named San Jose as #5 best place to live. Or maybe it was what the real estate services firm JLL saw when they named San Jose the #1 city in the U.S. for attracting innovation-oriented industries. They saw a great opportunity to be a part of a city on the rise.

Google’s proposed transit-oriented neighborhood may ultimately bring as much as $19 billion in new investment to the city over the course of the next decade or so. The company is beginning site preparation this year and expects to start building in Q1 2023.

The Google project is taking place along a stretch of the city that’s currently made up of older commercial and industrial buildings, junkyards, warehouses, and vacant lots, among other structures. It will, in short, move an under-utilized area to a higher purpose, creating jobs, housing, and potentially higher tax revenues for the city. As planned, Google’s mixed-use neighborhood is slated to accommodate up to 7.3 million square feet of offices, 6,000 residential units, 500,000 square feet of retail space that would include shops and restaurants, 300 hotel rooms and 15 acres of open space.

At Urban Catalyst we’re doing our part to support this renewal with the investments we’ve made through our Fund I, and the planned investments through Fund II, now in fundraising. To get a closer look into what we’ve been doing, look no further than our Paseo project. Paseo is a reimagining of an existing downtown space once home to the Camera 12 theater but more recently having fallen into neglect and disuse.

We are creating a dynamic mix-used property and rolling out a new “Restaurant Row” along South Second Street and the Paseo de San Antonio. Signed tenants include Urban Putt, a miniature golf course operator; Unofficial Logging, which is tapping into the growing enthusiasm for ax-throwing with a unique restaurant and bar concept; and Paper Plane, whose Eos & Nyx will offer brunch, lunch, and dinner as well as cocktails.

And that’s not all. We recently broke ground on Gifford Place, one of the first new senior living facilities to be built downtown in many years and just 500 yards from the first phase of the Google project.

Using Google can be a great way to get information. Watching what Google is doing in downtown San Jose can be a good way to get a peek into the future of the city. To be a part of this future, 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;
- Potential for foreclosure – All financed real estate investments have potential for foreclosure;
- 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;
- Impact of fees/expenses – Costs associated with the transaction may impact investors’ returns and may outweigh the tax benefits
- 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.