$850 million: Busy developer deepens downtown San Jose investments

SAN JOSE — A busy developer has dramatically increased its
spending plans for projects in downtown San Jose, saying it’s
confident in the potential for the city’s downtown despite the
coronavirus.

Urban Catalyst is now planning to invest $850 million on
projects in downtown San Jose, compared with the $700 million the
development firm previously envisioned.

The upswing in project investments represents a huge increase
— 21 percent more — over the amount the real estate company had
been eyeing just a few months ago in the urban heart of the Bay
Area’s largest city.

Urban Catalyst has decided to greatly expand the scope of
housing it is planning to develop a short distance from a transit
village called Downtown West that Google is planning near the
Diridon train station, a move that also has pushed higher the
developer’s estimates on what it expects to spend on an array of
projects.

San Jose-based Urban Catalyst was formed to capitalize on the
tax benefits conferred on companies that undertake substantial
development projects in specified geographic areas that are known
as opportunity zones. Created through a 2017 tax reform plan
initiated by President Donald Trump, the opportunity zones include
nearly all of downtown San Jose.

“Opportunity zones are the key to activating communities, like
downtown San Jose, which has great potential to be a thriving
work-live-play environment,” said Erik Hayden, founder of Urban
Catalyst. “As our nation’s priorities change, investors are
shifting focus, seeking to put their money to work in vehicles that
offer more stability than stocks and less hassle than rental
properties.”

The primary changes are being crafted for Urban Catalyst’s
Madera @Downtown West and Delmas Senior Living housing
developments, representatives for the developer said.

Instead of rising next to each other on the same parcel, the
projects now will sprout on separate parcels in the same area near
the corner of West San Carlos Street and Gifford Avenue.

Originally proposed as a 75-unit project, Delmas Senior Living
now will consist of 167 units. These are split into 117
assisted-living units and 50 memory-care units, Urban Catalyst
said.

Madera @ Downtown West will remain at its original size of 157
units, but will now be on a separate lot from Delmas Senior
Living.

Urban Catalyst’s primary plans in downtown San Jose are: 900
residential units, 175 extended-stay hotel rooms, 275,000 square
feet of office space, and 50,000 square feet of ground-floor
retail.

A vast redevelopment of the long-defunct Camera 12 movie theater
site as a new office and restaurant hub is among the high-profile
projects the developer is planning.

Urban Catalyst also intends to redevelop multiple parcels on
South First Street near East Santa Clara Street as a mixed-use
restaurant and office complex that will incorporate an existing
historic building and add a rooftop cafe and lounge that will offer
sweeping vistas of Silicon Valley.

“Our opportunity zone projects are garnering strong interest
from investors,” Hayden said. “In addition to the financial
incentive, these projects also will transform downtown San Jose
into a thriving center that ties residential, retail, small
business, commercial, and educational facilities together with
public transportation.”

�

 

 

Source: FS – All – Real Estate News 1
0 million: Busy developer deepens downtown San Jose
investments