SAN JOSE — A real estate investor that’s suddenly become an active player in downtown San Jose has widened its holdings near the sites for a proposed Google transit village, saying it plans a big hotel at the location.

The latest purchase by Urban Catalyst creates a significant development footprint at the corner of West San Carlos and Josefa streets.

Urban Catalyst intends to activate what it calls “The Keystone” property by building a new, select service, 170-room business hotel that will offer high-level services and amenities, as well as onsite parking, the company stated.

The company is a real estate firm formed to create an investment fund that can capitalize on the tax savings made possible by opportunity zones.

“Transit-oriented development, like this hotel, allows us to be part of building a vibrant, livable and sustainable community,” said Erik Hayden, president of Urban Catalyst.

Urban Catalyst has spent $14.7 million since it began purchasing downtown San Jose properties just two months ago. Ultimately the company would like to purchase and redevelop 10 to 12 downtown San Jose sites, Hayden said.

The company is the latest player to emerge as an active investor in downtown San Jose since Google announced plans for a transit-oriented village near the Diridon train station. Jay Paul Co. and Gary Dillabough also have become significant investors in the downtown area.

Urban Catalyst, acting through an affiliate, UC Keystone Owner, paid $5 million for parcels at 491 W. San Carlos St. and 270 Josefa St., according to Santa Clara County property records that were filed on July 17.

The properties include the former location of Keystone Restaurant Supply, which had been in business since 1867 as a supplier of appliances and equipment for dining establishments.

Colliers International commercial real estate agents John Kovaleski, David Buchholz, and Alex Kovaleski arranged the latest purchase.

This week’s acquisition comes on the heels of Urban Catalyst’s purchase on June 28 of lots at the same corner that included the sites of Hub Cap City and Custom Apparel By Susan Kay’s businesses.

“We love the Diridon Station Area Plan, we like transit-oriented development, and we like that Google is coming into town,” Hayden said at the time of the prior deal.

Urban Catalyst paid $2.8 million in the earlier acquisition, county documents show.

This deal marks the third purchase in downtown San Jose by Urban Catalyst since it bought an interest in a Gary Dillabough property on South First Street at the old Lido Club site. That deal, completed in May, was worth $6.9 million.

“What opportunity zones do is they encourage developers such as myself to focus on certain areas,” Hayden said in a prior interview with this news organization. “Without opportunity zones, I would still be investing in downtown San Jose, but not as much.”

In numerous communities in the United States, opportunity zones have been enabled by President Donald Trump’s tax-cut initiative. Investors in properties located in opportunity zones can gain tax benefits if they undertake substantial redevelopment of a site and then retain ownership of the parcels for a required period of time.

Google has proposed a transit-oriented community of office buildings, homes, restaurants, shops and parks near the Diridon train station on the western edges of downtown San Jose where 25,000 people could work, including 15,000 to 20,000 of the search giant’s employees.

“Through these property purchases, we are making bold moves to revitalize the area by filling the demand for downtown hotels offering walkability and easy access to mass transit,” said Joshua Burroughs, a partner with Urban Catalyst.