Urban Catalyst, a San Jose-based sponsor of qualified opportunity funds and other investment programs, announced the launch of UC Multifamily Equity I LLC. The fund, which seeks to raise $67 million from accredited investors, has been structured as a real estate operating company, which allows it to accept funds from qualified retirement accounts.
UC Multifamily Equity I LLC will help fund the development of a 272-unit luxury apartment building in San Jose, California dubbed “Aquino.”
Located within walking distance of Downtown San Jose’s western edge, Aquino will be located next to the site of Google’s planned Downtown West campus and within walking distance of the SAP Center and Diridon Station. The project is fully entitled and approved for multifamily construction, according to Urban Catalyst.
Aquino will consist of studio, one-, two-, and three-bedroom units with stainless steel appliances, quartz countertops, electric ranges and air conditioning. Urban Catalyst says residents will have access to private co-working offices, a bar and lounge, a fitness center with a yoga studio, a dog run, and a courtyard with an outdoor kitchen.
Urban Catalyst says the San Jose metro’s average multifamily occupancy rate was 95.7% at the end of Q1 2023, higher than the national average of 94.5%, according to CBRE data.
The company says multifamily rents in the Bay Area’s South Bay subregion, which includes the San Jose metro, are projected to increase 47% in the next decade, according to Yardi Matrix data. The South Bay’s projected rent growth exceeds that of Austin, Nashville, Phoenix, and several other major U.S. multifamily submarkets, Yardi Matrix data show.
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.