Urban Catalyst recently announced closing on the final parcels of property for the Delmas Senior Living center. And that’s a big deal for two reasons.
The first reason is that it represents the final parcels needed for the ground-up projects in Urban Catalyst’s Fund I. Owning land is important because it is a tangible asset and provides the potential for long-term appreciation; you don’t just have site control, you have ownership.
Our first fund closed Dec. 30 with $131 million in investments. The other Fund I projects include mixed-use office, multifamily residential, hospitality and student housing—all of which are moving forward quickly.
Second, this is an important milestone for the development of the first senior living project to be built in downtown San Jose in over 30 years. Residents of three surrounding neighborhoods with significant populations--Willow Glen, Nagley Park and the Rose Garden--have to go on waiting lists to get into a nearby senior facility. Now they’ll have one in their backyards.
We’re developing a Class A building that will be an ideal place for our seniors with family in the area, offering assisted living and memory care. We want to be a city that provides a rich environment for everyone from 8 to 80, and this facility will provide our seniors with easy access to all the amenities downtown has to offer, including the four theaters, restaurants, the San Pedro Square farmers market and the arts and entertainment district.
We think it’s going to be an exceptional facility, with amenities including a fitness center, digital café, bistro, nurses center and a hair salon.
You can read more about the Delmas Senior Living center on The DI Wire and GlobeSt.com.
And while our Fund I projects move forward, we are simultaneously taking investments for Fund II, which is centered on multi-family apartments and office space.
So there’s a lot going on, and that’s the way we like it! You can get more details about the Delmas Senior Living project from our news release.
Contact us today to learn more!
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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:
- 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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- 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.
- 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.
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