Urban Catalyst has launched a multifamily fund to back the development of its Aquino project in San Jose, Calif. The firm structured its UC Multifamily Equity I LLC fund as a real estate operating company to allow funding from qualified retirement accounts like IRAs and 401(k) plans. Google is developing its Downtown West campus next to Urban Catalyst project site.
The Aquino project is fully entitled and approved for multifamily construction, but Urban Catalyst has not yet disclosed a construction timeline. When fully built, Aquino will offer 272 units in studio, one-, two- and three-bedroom layouts. Community amenities will include a bar, lounge, fitness center, yoga studio, dog run, courtyard, an outdoor kitchen and private coworking offices. Aquino is located within walking distance of the SAP Center and the Diridon Station, which serves as a major transportation hub for the area.
According to Marcus & Millichap’s 2023 second quarter report for San Jose’s multifamily market, Silicon Valley workers are willing to pay higher rents for apartments near office campuses, which will continue benefiting the area’s overall multifamily demand. The report also noted that San Jose’s average effective rent rose 7.4 percent year-over-year to $3,040 per month in March, surpassing other Bay Area metros by $200.
Solidifying San Jose presence
Besides Aquino, Urban Catalyst’s second multifamily fund includes offerings like its 388-unit Echo property, which is located next to a future BART station, and the 169-unit Gifford Place community, which offers assisted living and memory care senior housing units. Both of those communities are located in San Jose, which is a primary focus for Urban Catalyst.
The firm previously raised $131 million for Urban Catalyst Fund I, which focused on seven ground-up developments located in San Jose’s Qualified Opportunity Zones.
