Urban Catalyst’s Second OZ Fund Hits $100 Million In Funding

Urban Catalyst announced that it has raised more than $100 million for its Urban Catalyst Opportunity Zone Fund II. Their second OZ fund furthers the construction of new ground-up projects in downtown San Jose by funding ICON/ECHO, a property that will feature property will feature 389 units of multifamily apartments and approximately 511,000 SF of offices. In December 2020, Urban Catalyst closed their OZ Fund I after completing a $131 million raise.

“There are many reasons that Opportunity Zone funds are attractive to investors, including the potential to defer capital gains taxes, and, in our case, the chance to invest in one of the country’s most dynamic cities,” said Erik Hayden, founder of Urban Catalyst. “We’ve seen the enthusiasm for this with our first fund, and it has continued with our Fund II.”

According to Morgan Mackles, EVP of investor relations at Urban Catalyst, the fund has been popular with Bay Area residents, in particular those with recent capital gains from the sale of stock or a business, as well as investors from other states as they look to invest in one of the strongest real estate markets in the country.

There are 11 Opportunity Zones in San Jose. The City of San Jose has been attracting a lot of positive news lately, garnering the #1 ranking by JLL for attracting innovation-oriented industries, and the #5 ranking in U.S. News & World Report’s “Best Places to Live.”