Urban Catalyst Launches Its First Delaware Statutory Trust

Urban Catalyst, a leading private real estate fund manager, has expanded its family of offerings with the launch of its first Delaware Statutory Trust (DST). The Urban Catalyst Industrial I DST is a $9.8 million vehicle investing in a strategically located industrial property in Dallas.

The property features a tenant with a long-term triple-net lease, and built-in rent escalations. The new DST intends to acquire the property in an all-cash purchase.

DST Background

DSTs enable investors who have recently sold real estate to defer the realization of a capital gain, similar to a traditional 1031 exchange. An investment in a DST is treated as a direct investment in real estate, but allows investors to take a fractional interest in an asset. Thus, a DST may be an appealing option for investors looking complete a 1031 exchange, but who want to take a more passive role in their future investment.

Growth In The DST Market

DSTs are not new, but interest has surged in recent years. According to recent data from Robert A. Stanger, DST fundraising surpassed $8 billion through the first 10 months of 2022. DSTs took in a record $7.1 billion in 2021.

“DSTs are a natural evolution for us,” said Erik Hayden, founder of Urban Catalyst. “We have professionally owned and managed portfolios of existing income producing properties for many years. DSTs give our investors access to our experience and to quality real estate with 1031 tax advantages.”

A Leading OZ Manager

Urban Catalyst is one of the leading Opportunity Zone fund managers, having closed the $131 million equity raise for its first OZ fund in December 2020. That fund is currently developing several projects in downtown San Jose, including:

  • The Mark: A high rise student housing tower located less than a block from the San Jose State University campus with up to 1,000 student beds.
  • Gifford Place: 167 units of assisted living and memory care, this project is the first senior living project to be build in downtown San Jose in decades.
  • Paseo: This renovation of a 12 screen movie theater will include 75,000 square feet of office and 25,000 square feet of retail.

Urban Catalyst is currently raising $200 million in equity for its second OZ fund, which will develop the Icon / Echo in San Jose. Icon is a 500,000 square foot office building, while Echo will consist of 389 units of multifamily apartments.

The Urban Catalyst Industrial I DST has a minimum investment of $100,000. Visit https://www.urbancatalyst.com/dst-industrial-1 to learn more about the new DST, including details on the property, location, and terms.

Andy Hagans
Andy Hagans

Andy Hagans is co-founder and CEO at AltsDb, and host of The Alternative Investment Podcast. He resides in Michigan.