SAN JOSE, Calif., May 23, 2019 /PRNewswire-PRWeb/ -- 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."
The NES Financial Opportunity Zone Fund Administration Suite leverages technology to streamline the complicated administrative requirements of OZ fund management, curtailing fraud and abuse and, ultimately, helping the Opportunity Zones program do the good it was meant to do. For fund managers and investors, this means a purpose-built solution that embeds security, transparency and regulatory compliance at each step of an OZ investment's life cycle.
"The purpose of our solution is to efficiently and securely handle administration of growing funds, at scale," said Reid Thomas, Executive Vice President at NES Financial. "This way, industry best practices are embedded from the outset, and Opportunity Zone fund managers like Urban Catalyst can focus on raising capital and deploying it to communities with untapped potential across the country."
For additional information about the Opportunity Zone Fund Administration Suite, please visit the NES Financial website or contact an NES Financial representative at 1-800-339-1031.
About NES Financial
NES Financial is a specialty financial administrator which serves sectors characterized by high administrative complexity, increased transaction security needs, and challenging regulatory compliance requirements. The company's purpose-built solutions streamline the administrative processes of these markets — simplifying specialized financial transactions, curtailing fraud and abuse and helping ensure the utmost in security, transparency and regulatory compliance through each step of an investment's life cycle.
With its Silicon Valley DNA, proprietary fintech platform and over 15 years of specialty financial administration leadership, NES Financial has defined best practices in each of the markets it serves — from 1031 exchanges and EB-5 visa funding, to private equity and the landmark Opportunity Zones program. Today, NES Financial services more than 290 funds, administers over $20B annually, and has worked with more than 700 EB-5 projects. For more information, please visit nesfinancial.com.
About Urban Catalyst
The first multi-asset Opportunity Fund in the Bay Area, Urban Catalyst is based in San Jose, California, and employs a world-class team of experienced local professionals to build out impact investment opportunities — multi-family, office, and industrial investment projects — that advance and improve the community while earning investors advantageous financial returns.
For more information, visit urbancatalyst.com.
SOURCE NES Financial