SAN JOSE, Calif.--(BUSINESS WIRE)--Urban Catalyst, Silicon Valley's premier Opportunity Zone Fund, today announced it has closed on its senior construction loan and pulled a building permit for its downtown Paseo project, key steps toward converting the shuttered Camera 12 theater into 100,000 square feet of mixed-use office and retail space.
The Paseo project is the first of six from Urban Catalyst to begin construction this year, with construction expected to conclude in July 2022. The $56.2 million loan is through Rialto Capital.
Located at 201 S Second Street in the heart of downtown, the three-story structure--closed since 2016--is being converted into 75,000 square feet of Class-A office space on two floors over 25,000 square feet of ground floor retail. The former theater’s high ceilings will enable such distinctive features as “floating” conference rooms, mezzanine levels and catwalks that lead to rooftop gardens.
Retail businesses that have expressed interest in leasing space include several full-service bars and restaurants.
“The Paseo de San Antonio is becoming a ‘restaurant row’ and we plan to add to it with some amazing ground floor retail spaces,” said Erik Hayden, Founder and CEO of Urban Catalyst. “Bringing this mix of new retail and office into a long-shuttered building is the very definition of urban revitalization.”
“We are almost 100 percent leased on the entire retail portion of this project in one of the most dynamic neighborhoods in the city,” said Josh Burroughs, Partner and Chief Operating Officer at Urban Catalyst. “The leasing interest has just been phenomenal and speaks volumes to the strength of downtown and this prominent location.”
The project was designed by local architects HGA & ArcTec and the general contractor for the project is Swenson Builders. Post construction, the office and retail will be property managed by MCM Diversified. Nick Goddard with Colliers International is the retail leasing broker, and Jeff Arrillaga with Newmark is the leasing broker for the office component of the project. Construction financing was arranged in coordination with Jordan Angel of JLL.
The Paseo project was part of Urban Catalyst’s Fund I, which closed in December after raising $131 million in investments. Urban Catalyst’s Fund II is raising $200 million and is now open to investors. This fund will also focus on office and residential development in the heart of downtown San Jose.
About Urban Catalyst
Urban Catalyst is focused on ground-up development projects in downtown San Jose. In 2020, Urban Catalyst surpassed their fundraising goal, securing $131 million from investors during its first round. Forbes and the Sorenson Impact Center recognized Urban Catalyst as one of the top 10 Opportunity Zone Funds in the inaugural Forbes OZ 20.
