Opportunity Zone Investments: Fund II Opportunity Zone From Urban Catalyst

DOWNTOWN SAN JOSE

Opportunity Zone Fund

Opportunity Zone Fund II (“Fund II) is a private equity real estate development fund focused on ground-up development in downtown San Jose, California. Fund II has a diversified portfolio of asset classes, including multifamily, hospitality, and senior living. Fund II includes four projects: Icon, Echo, Gifford, and Keystone and is raising $200 million for these projects. The Marriott hotel (Keystone) is under construction and anticipates opening in Q2 2025. Urban Catalyst owns all of the land for these projects and has approvals to start construction.

POTENTIAL TAX BENEFITS

To receive the tax benefits associated with opportunity zone funds (QOZ), an investor must invest capital gains. Investors have 180 days to invest into a qualified opportunity zone fund after the date of their initial capital gains event.

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DEFERRAL OF CAPITAL GAINS

Investors are able to defer paying federal capital gains taxes on their initial capital gains event until they pay taxes in 2027.

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NO TAXES ON ANY FUND PROFIT

After an investor holds their investment in an QOZF for 10 years, no federal capital gains taxes due on any profits.

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NO DEPRECIATION RECAPTURE

Investors will benefit from any depreciation that occurs on the properties through pass-through losses.

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Opportunity Zone Fund II (“Fund II) is a private equity real estate development fund focused on ground up development in downtown San Jose, California. Fund II has a diversified portfolio of asset classes including multifamily, hospitality and senior living. Fund II includes four projects: Icon (multifamily), Echo (multifamily), Gifford (senior living) and Keystone (hotel - Marriott Towneplace Suites). Fund II is raising $200 million for these projects. The Marriott hotel (Keystone) is under construction and anticipates opening in Q2 2025. Urban Catayst owns all of the land for these projects and has approvals to start construction.

To receive the tax benefits associated with opportunity zone funds, an investor must invest capital gains. Investors have 180 days to invest into a qualified opportunity zone fund after the date of their initial capital gains event.

POTENTIAL TAX BENEFITS:

Centrally located, just yards away from the future Bart station and near tech campuses including Google, Adobe, Zoom, and more
High-density residential real estate with amazing amenities, including infinity pool, an indoor/outdoor fitness facility with a lounge, movie room, game room, and full kitchen, and an amazing rooftop lounge, helping alleviate the housing shortage in Silicon Valley
Walking distance from tech campuses, City Hall, San Jose State University, restaurants, bars, cafes, small businesses and all downtown San Jose has to offer

Received unanimous San Jose City Council approval

A 26-story residential building, with related amenity spaces, and ground floor commercial spaces over one level of subterranean parking garage
Located on Santa Clara Street, the main drag of the central business district, across the street from City Hall and yards away from a future BART station, this project is the definition of Transit Oriented Development
This multifamily building is in Downtown San Jose, with forty thousand square foot floor plates, 14-foot floor heights, floor to ceiling windows, adequate parking, including 175 bicycle parking spaces, and a beautiful design
Walking distance from City Hall, San Jose State University, restaurants, bars, cafes, small businesses and more

*Currently, Icon is entitled for office space, however, a preliminary application has been submitted to the City of San Jose to change the use to Multifamily

Senior Living (169 Units)
GIFFORD PLACE

Highlights:

Delivering the critical need for assisted living and memory care in the urban center of San Jose, with amazing access to Downtown San Jose's amenities and activities
The first senior living project in downtown in decades, Gifford Place addresses the coming “gray wave” in Silicon Valley, the hottest senior living market in the country
Located near the affluent neighborhoods of Willow Glen, Rosegarden, and Naglee Park

Project Status:

Demolition completed and shovel ready

Marriott Hotel (176 Keys)
KEYSTONE

Highlights:

Highly-coveted location: 300 yards from Google’s planned mega-campus and 3 blocks from Adobe’s Global Headquarters
Steps away from the SAP events center (the most used events center in the country behind Madison Square Garden) and next to the largest multi-model transit hub on the West Coast: San Jose Diridon Train Station
Keystone started vertical construction in January 2023

Project Status:

Vertical construction in-progress

Multifamily (388 Units)
ECHO

Highlights:

Centrally located, just yards away from the future Bart station and near tech campuses including Google, Adobe, Zoom, and more
High-density residential real estate with amazing amenities, including infinity pool, an indoor/outdoor fitness facility with a lounge, movie room, game room, and full kitchen, and an amazing rooftop lounge, helping alleviate the housing shortage in Silicon Valley
Walking distance from tech campuses, City Hall, San Jose State University, restaurants, bars, cafes, small businesses and all downtown San Jose has to offer

Project Status:

Received unanimous San Jose City Council approval

Echo Project, part of our Opportunity Zone Fund II

Multifamily* (650 +/- Units)
ICON

Highlights:

A 26-story residential building, with related amenity spaces, and ground floor commercial spaces over one level of subterranean parking garage
Located on Santa Clara Street, the main drag of the central business district, across the street from City Hall and yards away from a future BART station, this project is the definition of Transit Oriented Development
This multifamily building is in Downtown San Jose, with forty thousand square foot floor plates, 14-foot floor heights, floor to ceiling windows, adequate parking, including 175 bicycle parking spaces, and a beautiful design
Walking distance from City Hall, San Jose State University, restaurants, bars, cafes, small businesses and more

Project Status:

*Currently Icon is entitled for office space, however, a preliminary application has been submitted to the City of San Jose to change the use to Multifamily

FREQUENTLY ASKED QUESTIONS

What are my capital gains tax advantages if I was to invest in the Opportunity Zone Fund II?

You'll defer your federal taxes until 2027 and have federal tax-free profits after 10 years.

Why should I invest with Urban Catalyst?

Urban Catalyst is a Private Equity firm with 20+ years of experience in ground-up development. Fund II is a diverse portfolio with 4 properties including multifamily, senior living, and hotel. Urban Catalyst has discretionary approval for all projects with one project, the Keystone Hotel, under construction and expected to be completed early 2025.

Urban Catalyst functions as both a fund manager and developer, providing us with the agility and expertise necessary to effectively tackle challenges within the dynamic real estate market. As developers deeply rooted in the heart of downtown San Jose, our commitment to the revitalization of the downtown core goes beyond constructing buildings. We believe in fostering sustainable economic development, creating job opportunities, and contributing to the overall well-being of the community.

Urban Catalyst's unique differentiator is our developer-first approach and deep local expertise. Unlike larger funds that focus on fundraising before securing quality projects, we already have trophy projects in our pipeline located in the downtown San Jose opportunity zone. With years of experience developing in San Jose, including being recognized as the Silicon Valley Business Journal’s 2024 Developer of the Year, we leverage our deep understanding of local processes and strong relationships with key property owners to efficiently secure the best projects.

Where can I find more granular fund information including PPM, IRR, etc?

We'd be happy to connect and send you additional information. Schedule a call to start the process.

Can I meet your leadership team in-person?

Yes! We work where we develop - our office is located in downtown San Jose. We host both in-person events and meetings, while also hosting remote webinars. Our favorite in-person event includes project site tours so you can see your investment dollars at work.

What are my capital gains tax advantages if I was to invest in the Opportunity Zone Fund II?

You'll defer your federal taxes until 2027 and have federal tax-free profits after 10 years.

Why should I invest with Urban Catalyst?

Urban Catalyst is a Private Equity firm with 20+ years of experience in ground-up development. Fund II is a diverse portfolio with 4 properties including multifamily, senior living, hotel, and more. Urban Catalyst has discretionary approval for all projects with one project, the Keystone Hotel project, already under construction.

Is investing in California risky?

California not only has the highest property values but also has the highest household income growth rates in the country.

Where can I find more granular fund information including PPM, IRR, etc?

We'd be happy to connect and send you additional information. Schedule a call to start the process.

Can I meet your leadership team in-person?

What are the benefits of investing with a Private Equity Fund that's also the Developer?

Being both the developer and the equity partner allows us to make the best decisions for all of our investors. We're in full control of when a project starts and it's progression. Having this ability is what sets us apart from the rest and allows us to do what's right on behalf of our limited partners and investors.

Marcel B.Engineering Manager

“...the ease and accessibility of OZ investing make it stand out as both a way to reduce taxes while playing a role in revitalizing neighborhoods."

Suresh R.Engineer at Google

"I’m really optimistic about San Jose and I think San Jose is going to come back strong. Many tech companies are expanding there, including my company, Google."

David C.CEO and Real Estate Investor

“This investment is a very good opportunity to potentially capture some of the growth (of San Jose) and also help minimize the capital gains tax, so that’s a powerful combination."

DAVE K.VP at a Biotech Company

“When I see what Google is trying to build, and what Urban Catalyst is doing on top of this, it really got me excited. I want to be part of that.”

Accredited Investors invest with Urban Catalyst because they’re interested in:

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Diversifying

Diversifying investments from heavily-concentrated stock portfolios into real estate

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Owning property

Owning property and appreciation opportunities that come with centrally located real estate, next to prestigious corporate headquarters, and taking advantage of a growing downtown

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Capital gains tax advantage

Capital gains tax advantage opportunities that come with opportunity zones

OPPORTUNITY ZONE FUND II

Opportunity Zone Fund

POTENTIAL TAX BENEFITS

OPPORTUNITY ZONE FUND IN THE HEART OF DOWNTOWN SAN JOSE

Interested in learning more?

OUR QOZ FUND II OFFERING

AWARDS & RECOGNITION

FREQUENTLY ASKED QUESTIONS

INVESTOR SPOTLIGHT