Urban Catalyst Begins Construction on Hospitality Development in Silicon Valley Opportunity Zone

Urban Catalyst, a San Jose-based sponsor of qualified opportunity funds and other investment programs, announced the company started demolishing the site of its Keystone project, a 176-key Marriott TownePlace Suites Hotel.

The company says the property will be Downtown San Jose’s first extended-stay hotel.

Urban Catalyst says demolition crews began on Feb. 16, 2023, to raze the project site at the northeast corner of West San Carlos and Josefa streets to allow for the construction of the eight-story hotel. The company says vertical construction will start next quarter and the project is slated for completion in the first quarter of 2025.

Keystone is three blocks from the global headquarters of Adobe, historically a large user of extended-stay rooms, and Urban Catalyst says the hotel will accommodate “businesspeople looking for long-term stays.” It’s planned to provide rooms for construction workers that will help Google build its San Jose campus and aid other downtown developers that import their construction labor.

Keystone’s guest rooms will comprise full kitchenettes, with units ranging from 370 to 830 square feet in size.

Urban Catalyst held a groundbreaking ceremony in January 2023 for Keystone which was attended by a select group of invitees, including San Jose Mayor Matt Mahan and San Jose City Councilmembers Dev Davis and Omar Torres. Urban Catalyst says Keystone is the first ground-up project to go vertical in the developer’s eight-project opportunity zone portfolio.

Keystone is one of three projects Urban Catalyst is doing on the same block-long stretch of West San Carlos Street to accompany Google’s 80-acre project surrounding Diridon Station. The other two projects include a senior living facility and an apartment complex, support the street’s ongoing revitalization and the area in and immediately around Google’s development site.

Urban Catalyst is a real estate equity fund manager and development company that has focused on ground-up projects in downtown San Jose, California. The company’s first opportunity zone fund, Urban Catalyst Opportunity Fund I, closed in December 2020 after raising $131 million.

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