A job creation engine, Silicon Valley is filled with companies that are growing and expanding, driving the need for offices and housing. While the main hubs of Silicon Valley—San Francisco, Palo Alto, Mountain View, Menlo Park—are focused on residential prospects, San Jose and Oakland also have a large amount of developmental properties available.In addition, in San Jose, Google has announced a new campus, Adobe is expanding its existing presence, and San Jose State University—the largest campus in the Bay Area—is creating demand for student housing. In Oakland, overflow from the major job center across the Bay, San Francisco, is rapidly presenting the need for more residential and office space.
A multi-asset fund made up of real estate developers that specialize in the Bay Area, especially San Jose and Oakland, Urban Catalyst has a real strategic advantage. Through these opportunity zones, we have a pathway to create a sense of place with sustainable development that activates the community by building offices that create jobs and houses that solve the housing crisis. Keep in mind, Capital Gains invested into an opportunity fund do not need to be recognized when the investment is sold or exchanged or until December 31, 2026. After holding an investment in the fund for seven years, the Capital Gains on the original Capital Gains is reduced by 15 percent, the equivalent of a 15% step-up in basis on the initial investment. And after holding an investment in the fund for ten years, an investor’s disposition of an investment in the fund does not result in any additional federal income taxes.
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*Consult with your attorney regarding federal and state regulations and note tax regulations are subject to change
