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Urban Catalyst Chooses NES Financial to Administer First San Jose Opportunity Zone Development

NES Financial announced today that it has been contracted to provide its purpose-built Opportunity Zone Fund Administration Suite to Urban Catalyst — a San Jose–based Opportunity Fund that plans to develop a 65,000-square-foot mixed-use space within one of the city’s Opportunity Zones as their first project. They also have five additional projects in their Opportunity Fund pipeline.

The tax incentives associated with the Opportunity Zones program are designed to encourage long-term investment into targeted economically distressed areas across the country. Opportunity Fund investors get immediate deferral of taxes on invested capital gains, and additional tax benefits accrue at 5-, 7- and 10-year milestones. “While an Opportunity Fund provides great tax benefits for our investors, the projects are what matters,” said Erik Hayden, founder of Urban Catalyst.

Urban Catalyst is embarking on their first Opportunity Zone development with a project called the Fountain Alley Building. The plan is to redevelop three contiguous parcels next to the iconic Bank of Italy building into a mixed-use project with 11,000 square feet of ground-level retail space below 65,000 square feet of office space — all while creating positive economic impact for the area.

“When investors evaluate their Opportunity Fund options, third-party oversight is one of the most important factors they consider,” said Hayden. “NES Financial provides the leading administrative solution in this space — they are the gold standard. We talk about NES Financial in every pitch meeting we hold, and our investors are more comfortable knowing they’re on our team.”

Read the full press release by clicking here.

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