Urban Catalyst Stakes Claim to First San Jose Opportunity Zone Property
Opportunity Fund manager Urban Catalyst has become the first project to close on Opportunity Zone property in the San Jose downtown area. Opportunity Funds pool investor assets to fund commercial and multi-family residential projects in designated Opportunity Zone areas.
See Also: Understanding Opportunity Zones
Located 26 and 30 S 1st Street, the project will tie into an adjacent historic building, which is currently undergoing extensive renovation. The planned development will include 65,000 sq ft of office space, and 11,500 sq ft of retail space on the ground level, according to Silicon Valley Business Journal. The target tenants for this development will be small to medium-sized companies that have been unable to gain a foothold in other, larger, downtown developments.
With proximity a mere 200 ft from a future BART station, the Opportunity Zone project will provide much needed office and retail space in an area that is considered to be under-performing. Opportunity Zones were created as part of the 2018 tax law changes, and are designed to generate interest in economically depressed areas by providing incentives to investors and developers to bring much-needed resources to the area.
See Also: Opportunity Zones in San Jose
Construction is expected to break ground early in 2021. In the meantime, Urban Catalyst has several other Opportunity Zone projects in the works.
Keystone Commercial Brokerage serves the needs of commercial real estate investors in the Santa Clara and San Mateo counties, specializing in commercial property, multi-unit residential, office space, and multi-use property. Paul Phangureh has over 16 years of experience in buying and selling in the Santa Clara and San Mateo County areas. Contact Paul at 650-924-2544, or email at [email protected]nebrokerage.com