The Unique OZ Opportunity In San Jose, With Urban Catalyst

In this webinar, Erik Hayden highlights the second Urban Catalyst fund focusing on Opportunity Zones in San Jose, California.

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You can visit the Official OpportunityDb Partner Page for Urban Catalyst Fund II to:

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  • Learn key details about the fund and related projects.
  • Request more information from the fund sponsor.

Webinar Highlights

  • Brief overview of the Opportunity Zone program.
  • View of the Opportunity Zones in San Jose.
  • Urban Catalyst’s focus on job engines, transit infrastructure, and universities.
  • San Jose’s supportive approach to development, unlike most of California.
  • Surge of activity from other leading developers in San Jose.
  • Recap of Fund I projects.
  • Summary of the four projects in Urban Catalyst’s second OZ fund, including a hotel, senior living, residential, and office developments.
  • Update on return-to-office trends.
  • Projected timeline and returns for Fund II.
  • Live Q&A with OZ Pitch Day attendees.

Featured On This Webinar

Industry Spotlight: Urban Catalyst

Urban Catalyst is a real estate equity fund focused on ground-up development projects in downtown San Jose. Urban Catalyst closed its successful Fund I in December 2020; that fund was a multi-asset real estate fund focused on ground-up developments consisting of office, mixed-use, student housing, senior housing and a hotel.

Learn More About Urban Catalyst

Webinar Transcript

Jimmy: Urban Catalyst, they are developing ground-up construction all over the Opportunity Zones in Downtown San Jose. Erik, without further ado, why don’t you dive into today’s presentation, “Urban Catalyst Opportunity Zone Fund II?”

Erik: All right, great. Jimmy, well, thank you for the introduction. So, happy to be here again, love working with “OpportunityDb.” Today we’re here to talk about Urban Catalyst Opportunity Zone Fund II. So, this is our second Opportunity Zone fund. This fund is structured a lot like a traditional real estate equity fund. And as you mentioned, we’re focused on doing ground-up real estate development projects in Downtown San Jose, California.

And of course, because we’re an Opportunity Zone fund, we’re able to give those Opportunity Zone tax benefits to our investors. Just to kick us off, we’ve been featured pretty prominently in the news over the last few years. We’ve had over 250 news articles written about us here in San Jose. Really just a lot of positive buzz about what we’re up to. Probably the most important of these, we are named by “Forbes Magazine” as one of the Top 20 Opportunity Zone funds in the country.


So, nothing like getting a little national validation from Forbes that we’re doing things the right way. To talk a little bit about the program, you know, in order to get the tax benefits associated with it, you have to invest capital gains. Here are the three most common ways that people have capital gains events, the sale of stock, the sale of a business, sale of real estate.

If you have one of these events, then you have 180 days to invest into a Qualified Opportunity Zone fund. We just put up the slide because we wanna make sure that, you know, no one misses out on that timeline. There are two major tax benefits associated with the program. The first benefit is you’re able to defer paying capital gains taxes until you pay your taxes in 2027. So, that means in that initial capital gains event, you get to defer paying those taxes for a few years.

The second major benefit is that after investors’ money seasons in our fund for 10 years, all of the taxes on the profits from the fund are tax-free. And those are the federal taxes. Our plan here at Urban Catalyst is to build these buildings, lease them up, stabilize them, hold them until we get to the end of that 10-year mark, and then sell the assets and liquidate the fund. And that’s when we return the majority of the profits to our investors.

So, those are the two major benefits. Just taking a step back here in the Bay Area, here are the Opportunities Zones in green. As Jimmy mentioned, we’re focused on San Jose, and even more specifically Downtown San Jose. You can see that four Opportunity Zones cover almost all of Downtown. And you know what’s interesting? When we first started Urban Catalyst back in 2018, you know, we’ve been developers around here for quite some time, you know, doing projects all over Silicon Valley.

You know, our whole plan was we wanted to do development projects in Downtown San Jose and we wanted to raise a fund to do that. It was only after we started forming Urban Catalyst that the Opportunity Zone program was created and that we learned about it and that everywhere we wanted to build these buildings was already located in an Opportunity Zone. We thought, “Well, wouldn’t it be nice to be able to give our investors these additional tax benefits?” So, that’s how we became an Opportunity Zone fund. It was really because of the overall macroeconomic trends throughout Silicon Valley, all pointing towards Downtown San Jose as the next place to do development on a large scale.

Whenever we do real estate development anywhere, there are a couple of things that we wanna see. The first is, you know, we wanna make sure that there’s a demand for all the different types of projects that we’re building. That demand here in Downtown San Jose is really driven by the Silicon Valley job engine. We also wanna make sure that transit and physical infrastructure is already in place.

You know, Downtown San Jose is really the only true urban environment in Silicon Valley. We have Diridon Station, which is slated to be the largest train station on the West Coast. It already has a variety of mass transit options that connect to it, including Caltrain which gets you up to San Francisco in about an hour. And now Bart, which is the largest regional mass transportation system here in the Bay Area, is fully funded to connect through Downtown San Jose into Diridon station.

Finally, San Jose State University, you know, with over 36,000 students, it’s the 2nd largest university in the Bay Area behind Cal Berkeley. And it’s located right in the heart of Downtown. Lastly, we wanna make sure that wherever we do development, the local government is supportive of development. In many California cities, the governments are anti-development. They try to stop development. It’s almost the exact opposite case here in San Jose where the local government is very supportive of high-density development.


They understand transit-oriented development. They want density where it belongs in the Downtown cores. This is a picture of my partner Josh and I with Matt Mahan, the mayor of San Jose. A lot of his policies have been very proactive towards encouraging development, and he follows on the heels of another mayor, Sam Mercado, who also is very pro-development. This is a picture of us at our Keystone groundbreaking. That’s our hotel project that’s in this fund.

We’ll talk more about that in a second. But overall, you know, San Jose has all the things that we wanna see when we do development anywhere. To give everyone an idea of just the massive revitalization that’s happening here in Downtown San Jose, I like to show this before and after slide. Here’s the current skyline of San Jose.

If all of the projects that are currently under construction or, you know, in the planning process are built out, say, over the next 10 years or so, Downtown San Jose should more than double in size. You can see Urban Catalyst, both our Fund I and Fund II project there in red.

To continue talking about the local market, this is my two-dimensional map. This black line represents the Opportunity Zone. Our office is right here. So, we’re located right in the heart of the Opportunity Zone here in San Jose. We’re right next door to Adobe’s world headquarters. It’s actually been kind of fun. Adobe has been working on building their fourth high-rise office tower right here. We’ve been watching it under construction.

They just completed it at the end of last year and moved 3000 employees in. So, it’s nice to have some new neighbors. We’re also right next door to Zoom. Here’s San Jose State University. This red dash line, this is where that new BART line is running with a station here in Downtown. And then connecting into Diridon Station, the large train station I discussed.

Now, the biggest story in Downtown San Jose over the last five years or so has been Google and their massive acquisitions. Some highlights, you know, they’ve spent more than $500 million acquiring property. That’s over 80 acres of property. And their plans that they had approved at City Council a couple of years ago show them building roughly 7 million square feet of office and 6,000 residential units.

At build-out, this will be Google’s largest campus on earth. Pretty exciting having Google come into town. They started construction on this project last December. They did some of the infrastructure improvements, demolition, and historic renovation in their first phase. Google has stated this is a 10-year, $19 billion buildout, and really, what this means for Downtown San Jose… You know, San Jose, we have just under a million people.

We’re currently the 10th largest city in America. The Downtown core itself has about 100,000 people and this campus alone is expected to bring between 40,000 and 60,000 additional people to Downtown San Jose every day. So, it’s a big plus for Downtown San Jose. But now, Google, they’re not the only story in town. We’ve seen other developers flood into Downtown over the last few years. Some really notable ones.

Boston Properties, a big publicly traded REIT. Jay Paul, who’s fresh off building 26 buildings in the City of Sunnyvale, just North of San Jose. West Bank, an international development company out of Toronto. And the Hines, the largest development company in the country. These core groups have spent more than a billion dollars acquiring property.

They have plans for a variety of different asset classes. Several other projects are already under construction or complete. And here are some examples of some of the recent developments in the Downtown core. In fact, these developments were all built by the partners here at Urban Catalyst over the last 10 to 15 years.

Now, we saw this, you know, call it wave of development coming to Downtown San Jose. And our whole plan here at Urban Catalyst was to get in on the ground floor, acquire properties before they were scooped up by all the other developers and big tech companies. And really, that’s exactly what we did with the acquisition of our Fund I and Fund II projects. Fund I projects, you can see in blue, Fund II projects in orange.

Our current offering is our Fund II. So, let’s talk about the four projects in Fund II. We have two that are right here. This is a great location in Downtown San Jose. It’s right on Santa Clara Street, which is really the main drag of the central business district. It’s across the street from City Hall and it’s right next to that future BART Station. You know, really making it the epitome of transit-oriented development.

Then down here, we have two projects in Fund II. This area of town is called Downtown West and it’s right next to Google’s, you know, giant campus. It’s actually right next to their first phase, about 500 yards away. So, great little neighborhood and location for those two projects as well. And here’s what those projects look like.

So, four projects, Keystone Hotel, that is an extended state business hotel. Marriott TownePlace Suites. Gifford Place, that is a senior living facility, assisted living and memory care. Echo, Echo’s a very traditional residential apartment building, almost 400 units. And then Icon, Icon is 500,000 square feet of office. I’ll talk about each of these projects in a little bit more detail now and go through, you know, really what the demand drivers are for that. And we’ll start with the Keystone Hotel.

As I mentioned, this project is under construction. We started construction in January of this year. It’s a 2-year build anticipated to be complete in early 2025. This project is great because there aren’t any other extended state business hotels in Downtown San Jose. That’s why Marriott really liked this location. We signed up their flag in 2019. This project’s also right near the SAP Center. That’s our arena here in Downtown San Jose.

A lot of people like to call it their Shark Tank because that’s where our San Jose Sharks hockey team plays. The SAP Arena is the second most-used arena in the United States behind Madison Square Garden. So, it gets quite a bit of traffic. All the big concerts coming through. Taylor Swift, a little bit too big for our arena is going to Levi’s Stadium about five miles North of San Jose, and that’s coming up this weekend. So, everybody’s pretty excited.

Here’s a picture of us kind of knocking down some of the buildings that used to be on the side of Keystone. Here’s what it looks like now as the project is under construction. In fact, this is a couple of weeks old. We’re now working on the second-floor concrete pour, and our crane is fully erected above the site. Right across the street from the Keystone Hotel, this is Gifford Place. This is a senior living facility.

And as I mentioned more specifically, it’s assisted living and memory care. A lot of demand for this product type here in Downtown San Jose. You know, we have a hard time building enough projects based on just how expensive land is and a variety of factors, but they haven’t built a project like this in Downtown in over 40 years. So, it’s definitely needed in the area, especially with aging baby boomers and really, a lot of the surrounding neighborhoods or some of the more affluent neighborhoods of San Jose.

And that’s really what folks wanna see when they put their parents or grandparents into a facility. They like facilities that are close by to their homes so they can go and visit. We broke ground on this project last summer. We knocked down a bunch of buildings. It’s quite a bit of fun. They actually let me drive a backhoe and gave about a one-minute tutorial, so that was pretty exciting for me. This project is shovel-ready and we plan on starting vertical construction in the next 12 months or so, as we continue to line up the financing to do so.

Next up, Echo. Echo is our 388-unit apartment building. Echo is just a great project and the demand for multifamily here in California is kind of a no-brainer, right? I mean, we have a housing crisis. We’ve had one for quite some time. It’s especially true here in Silicon Valley where we’ve created 6 jobs for every housing unit that we’ve built for over 30 years straight. And what does that lead to?

That leads to us having some of the highest occupancy rates in the country, that leads to us having really high rents. I mean, even if you take the single-family home prices here in San Jose, we just hit a new record of $1.7 million for the average home in San Jose, making us the most expensive big city to live in, in the entire country. The fourth most expensive big city to live in, in the entire world.

The demand driver of Silicon Valley, we crank out so many jobs, folks can’t afford mortgages and they are forced to rent, which drives up rental prices. So, we like that. I mean, we like it for our apartment buildings. We don’t so much like it for society. It makes it unaffordable for people to live.

Finally, we have Icon. Icon is our office building. Now, our office has taken a lot of flak in the news over the last year or so, and the returned office here in Silicon Valley is the slowest in the country. This project is, you know, fully entitled and really our plans for this right now is more of a wait-and-see as office financing markets are unavailable.

We are exploring changing this project into two multifamily high-rises. We’re going through some of the initial process on that, but as the demand for multifamily gets stronger and stronger and a lot of 3rd parties are projecting pretty significant rent increases for multifamily rents over the next 5 and 10 years here in the San Jose Metro region, it might make more sense for us to change this office building into an apartment building.

And really, that’s kind of one of the nice things about Urban Catalyst, right? We’re not just the fund managers, but we’re also the developers of all of our projects. And because we’re the developers, we can do things like make changes to buildings that haven’t been built yet, build other asset classes that just make more sense in the current economy. You know, that is really what sets us apart from other Opportunity Zone funds. You know, most other Opportunity Zone funds, their whole plan is to raise a bunch of money and then, you know, look around the country to find developers that have projects in Opportunity Zones so they can form partnerships.

You know, here in Silicon Valley, we like to look at Steve Jobs and Steve Wozniak and we think, “These guys go out, you know, raise a ton of money and then hire someone to build them a computer.” The answer is of course not, they built a computer and then they took it out to the market. And really, that’s exactly what we’re doing here at Urban Catalyst, right? We are the developers of all of our projects. We have projects in our portfolio, and now we’re taking those projects out to the market to raise the financing to construct them.

Another thing I’d like to talk about with all of our potential investors is, you know, when you hear about Opportunity Zone funds, you hear about the great tax benefits. And, you know, don’t get me wrong, we’re pretty big fans of the tax benefits around here at Urban Catalyst too. But what really matters because, I mean, if you think about it, the biggest tax benefit you’re getting is you’re getting tax-free profits after 10 years. You know, there better be profits after 10 years. Really, what’s the point of the whole program?

So, understanding who are the developers building the projects, what is the local market, and what are the asset classes being built? That’s really what matters. A little bit about me. I’m the founder of Urban Catalyst. I’ve been doing ground-up real estate development for my entire career. I’ve done several billion dollars’ worth of projects.

In general, I build institutional quality and scale projects. And what that means is I build big income-producing buildings with a typical exit strategy of selling to a publicly-traded REIT or a large institutional investment group. There are five partners here at Urban Catalyst. We also have just over 40 people that work here now. When I first started Urban Catalyst, I knew we’d be doing a lot of ground-up development projects in Downtown.

So, I really wanted to build an all-star team of Downtown San Jose developers. And I did that by bringing on Josh Burroughs and Paul Ring. Josh is our chief operating officer for 10 years. Before he joined Urban Catalyst, he was the lead developer at Swenson. They’re one of the largest landowners, developers, and general contractors here in Downtown San Jose. Josh has got experience building a variety of asset classes and quite a few projects.

And then Paul, very similarly, he was the head developer at a group called the Core Companies. They focused on multifamily and below-market-rate housing, almost exclusively here in Downtown San Jose. Paul now manages our team of 18 development and construction professionals that build all of our buildings.

Morgan Mackles. Morgan is our head of investor relations. He’s really the reason why we’ve been so successful in our fundraising, in our first Opportunity Zone fund, this fund, and then several of our other funds that we have on our platform. Morgan and I have been really close friends for over 25 years. We went to high school together. He was a groomsman at my wedding. Morgan’s background, as he likes to say, he builds scalable and repeatable sales processes. He does it for small and large companies throughout his career. He is done it for, you know, startups all the way up to Fortune 500 companies. We’re really just pleased really with Morgan’s success here at Urban Catalyst and it’s always fun working with your friends.

Sean Raft. Sean and I live in the same city, and Sean and Josh went to the same high school. Sean is our chief administrative officer in general counsel. So, he gets to do all the boring stuff like manage our financial consultants, our tax, and audit. He does everything with our fund administrator. He does our compliance with the SEC and with FINRA.

And then, of course, he monitors all of our Opportunities Zone obligations, makes it so we meet all of the rules. Kind of an easy way to say it, he really dots the i’s and crosses the t’s here at Urban Catalyst. So, here are the five partners at Urban Catalyst. You know, our experience combined, we’ve built over $5 billion worth of ground-up real estate in Silicon Valley.

And you can see the heavy concentration of projects we’ve done here in Downtown San Jose. For us raising Opportunity Zone funds. This is just another financing mechanism for us to continue doing what we’ve been doing for a long time, which is building successful ground-up real estate development projects in and around San Jose. Now, for the fun part, this is our projected timeline.

It’s always good to go through because every Opportunity Zone fund is a little bit different. We’re in the middle of our three-year fundraise. It’s a $200 million fundraise. To date, we’ve raised around $136 million. Important date to remember, here’s where you have to pay your taxes in 2027. And then here in 2034, this is when we plan on selling the assets. So, that’s 10 years from the day the last investor invests. We do plan on making distributions prior to 2034, starting with refinance events.

And this is pretty common for ground-up development projects and developers. You know, we build our projects, we lease them up, stabilize them, and we go out and we get permanent financing. We take the permanent financing, we pay off the construction loan, and then any excess refinance proceeds, we plan on distributing those to our investors. This is, of course, a tax-free distribution because as a refinance event, it’s a distribution of debt, kinda like a home equity line of credit. We anticipate our projects starting and completing and then refinancing between 2026 and 2028. You know, starting with our Keystone Hotel in 2026.

That’s great. Our goal is to provide some distributions prior to 2027 when investors pay their taxes. We do have no guarantees associated with that. After our buildings are built, we have cash flow from our stabilized assets. That cash flow, of course, just comes after paying debt service on those assets and continues throughout the hold period before, of course, we sell the properties.

Now, this is also where I like to talk about what I call the third hidden benefit of the Opportunity Zone program, and specifically for groups that are structured as LLCs, similar to Urban Catalyst. And the way that it works is, you know, every year, we plan on giving a K1 to our investors. And we’ll be making distributions along the way, but almost every year, we’re gonna have losses on that K1. A lot of those losses come from the depreciation of our stabilized assets. So, just like anybody that owns real estate, we’ll be depreciating those assets every year.

Now, the differences, of course, as an LLC, we pass through that depreciation as passive loss to our investors. So, that’s great. Our investors can use passive losses to offset other passive income. For example, this cash flow that will be coming from our projects. There is always a potential to offset passive loss with passive income, which is great, but here’s where that benefit comes in.

You know, typically when you sell a property, if you sell it for more than you bought it for and you took depreciation on it, the IRS goes, “Wait a minute. You shouldn’t have been able to depreciate that asset. Pay back all of that depreciation in what is called depreciation recapture,” and everybody hates depreciation recapture. So, it’s really nice because specifically for Opportunity Zone funds, there is no depreciation recapture when we sell our assets.

So, all of those passive losses that investors have, you know accrued over time, they get to keep them. And then, of course, the profits from the fund itself are also tax-free from a federal capital gains perspective. So, kind of the recap is a tax-free refinance event, distribution of debt, potential tax-free cash flow offset by passive losses throughout the hold period, and then, of course, tax-free profits when we sell the properties at the end of 2034. So, overall, the Opportunity Zone program is a pretty good program for our tax mitigation strategy.

The last thing I wanna talk about is our bonus units program that we have here at Urban Catalyst. This has been very popular in our other funds, so we definitely continued it in this fund. The way that it works is if you invest in Urban Catalyst, what you’re doing is you’re buying our units and then you’re paid out based upon the number of units that you own.

We give bonus units in three different ways. The first is our time incentive credit. Here we are in July, we have 1.25% bonus units. So, that would mean if you invested $100 with us this month, bought $100 worth of our units, we’d give you $101.25 cents worth of our units. The second way that we give bonus units is our multiple ventures program.

This is really a loyalty rewards program. So, if you invested in any of our other funds, you end up with 4.5% bonus units in this fund, if you invest into this fund. And then, finally, our volume incentive program, you know, our minimum investment size, $250,000. Bonus units start at $300,000, go all the way up to $1.9 million. This is really to incentivize investors, really reward investors who invest more. Then these three columns add together to get your total bonus units.

Also, just another thing to mention, you can see over here in the time incentive credit, it goes down every month throughout the duration of the fundraising process. So, we like to say the time incentive credit, it’s not a reason to invest into Urban Catalyst, but if you’ve decided to invest into Urban Catalyst, it is a reason to invest sooner than later. All right, Jimmy, that’s the end of my presentation.

Jimmy: Remarkable presentation. I love it every time, Erik. Erik, we got a handful of questions for you here. Let’s see. The first question is, is any of Icon pre-leased, or could you speak to the risk of the office space not leasing up? I think some of the investors on the call are probably a little bit nervous about the office sector still. So, talk to us there.

Erik: I think the office doesn’t just have the investors on this call nervous. It has the whole world nervous. I mean, obviously, the office has been really impacted by, you know, really the tailing effects of COVID. Icon is our office project. As I mentioned, you know, we are taking a really hard look at converting this into multifamily. We haven’t announced that we’re doing that yet, but I would say it’s pretty probable, it’s on the horizon here very shortly. And that’s because of the risk associated with the office.

I mean, we’ve seen vacancy rates increase from, you know, 10% pre-COVID to 20% here in Downtown San Jose. The demand just has not come around to the point where it makes sense to build new development. And if you put your crystal ball in front of you and say, “Well, how far into the future until the office returns and we can get financing and build that building,” it’s kinda hard to determine. It makes a little bit more sense for us to do multifamily. As that demand driver, we can see right in front of us. So, we are exploring that.

Jimmy: Good. A question here from Timothy in the chat. Timothy asks, “How has Silicon Valley Bank impacted your ability to raise funds in Silicon Valley? Is your company interested in JV deals in Downtown San Jose?” I guess he’s got two questions there, two separate questions. So, has the banking crisis kind of impacted your ability, first of all, address that one first?

Erik: You know, it’s hard to say if it impacted our fundraising velocity. I mean, we’re one of the only Opportunity Zone funds in Silicon Valley, and of course, it was called Silicon Valley Bank. So, it didn’t give a very positive perception of what is happening here in Silicon Valley. We did have, I don’t know, maybe 10% of my investors called me to ask and make sure that we were gonna be okay as a fund, which was fine. We were always going to be fine.

We had a bunch of sweeps set up just in case anything bad happened, and nothing really bad happened to any of our funds. But I wouldn’t say it was positive, Jimmy. The second question, are we accepting joint ventures on any of our projects? You know, we are looking for third-party equity on a number of our projects in order to complete the capital stacks to start construction on the buildings. So, if there are folks that do have third-party equity out there and they’re interested, they can always call me and chat with me about it.

Jimmy: And are you looking for more pipeline deals as well that you would JV partner on? I think that was also another question that Tim had.

Erik: You know, we’re not in a very active acquisition mode right now. We, in total, between our 2 funds and a variety of other projects, have over 9 projects and $1.5 billion worth of development going on here in Downtown, which is quite a big chunk. It makes us the fourth or fifth largest active developer in Downtown. So, we’re pretty good with our current holdings, although, as they say, Jimmy, you know, developers, we’re always looking to acquire more projects. Things always go on. So, eventually, we will be in the acquisition mode and if we saw a really amazing deal right now, we might take it. We’re always on the lookout

Jimmy: For sure. Does the Urban Catalyst QF plan to pay dividends in the second half of its lifespan? And if so, on what kind of schedule? I thought maybe you touched upon that in one of those earlier slides, but maybe you can go over that again.

Erik: I did. They might have asked that question before the slides. And what I can say is, you know, dividends isn’t really the right word. That’s what stocks provide to their investors. But we do plan on making distributions and we, of course, I outlined, we do it in three ways. Through the refinance events of our stabilized assets, through cash flow from our stabilized assets, and then from the sale of the properties.

Jimmy: Good. I’m gonna take a couple more questions and then we’re gonna move on to our industrial panel here in the main session. And Erik will be moving into his dedicated Urban Catalyst breakout session. Join that session. If you had more questions for Erik or if you wanna chat with him one-on-one, now’s your chance to get in a small room with a qualified opportunity fund manager for 20 or 30 minutes.

So, I’d encourage you to take advantage of that. But a couple more questions here in the main session before we move on with the programming today. Erik, Bill asks, “Urban Catalyst Fund I, remind me, was there an office building in that fund, and if so, is it started? And if not, will this be changed such as what you’re talking about here with Fund II?”

Erik: So, in Fund I, we had six projects. Two of them were office buildings. One office building is almost complete. We’ve leased, in that building, all of the ground floor retail, which is about 25% of the building. It’s about a 100,000 square foot building and we’re seeking tenants for the 75,000 square feet. You know, kind of the good news is for the first time in a long time, we’re actually seeing some folks out there that are interested in leasing the office. We haven’t seen any office leases in Downtown San Jose over 50,000 square feet since before COVID

So, it’s nice that we’re starting to get bites, especially from a lot of government tenants. Our other office project in Fund I, that is called the Fountain Alley Building. That project can’t be converted into a multifamily. We looked at it, of course, just doesn’t make sense. So, that project is a smaller project. That project, we’re in more of a wait-and-see mode as to when the office is going to rebound enough that it makes sense to build that building.

Jimmy: Perfect.

Erik: But in the meantime, it’s shovel-ready, we own the land, and that should be, you know, enough for us to hold until office starts to make sense again.

Jimmy: Excellent. Well, we’ve hit our time, Erik. But as I mentioned before, Erik’s now jumping into a breakout session for Urban Catalyst. If you wanted to speak one-on-one with Erik in a small group setting, click on over to that breakout session. Now, I’ve just posted a link to it in the chat here in your Zoom app. When that breakout session ends…by the way, it’s gonna get shut down at about 12:15 or so Eastern Time. Everybody head back into the main session here just using the same link that you used earlier today to join the event. So, again, head on over to the breakout session, then come back into this one using the same link you used to join earlier.

My colleague, Michael Johnston, will be running that breakout session. So, Erik, thanks for joining us today. I encourage you to hop on over to that breakout session now and join Michael and anyone else who may wish to ask you any questions about Urban Catalyst or real estate development in Downtown San Jose or really anything Opportunity Zone related. Go ahead and hit this guy with as many questions as you have. I’m sure you guys will have a nice conversation there. Erik, thanks so much once again, Urban Catalyst, for joining us today and partnering with “Opportunity Db” on OZ Pitch Day.

Erik: Thank you, Jimmy. Take care.

Jimmy: Thank you.