SAN JOSE — A foreclosure auction has paved the way for a South Korea-based group to take ownership of a San Jose site. A hotel with hundreds of rooms has been approved for the San Jose site, but has yet to be built.
The hotel development was purchased for $27.6 million by a South Korea-based group that owns the foreclosed loans after a short public auction in downtown San Jose on April 26.
A 200-room hotel was proposed on a vacant lot at 7 Top Golf Drive in the Alviso neighborhood north of San Jose. City officials approved the hotel, but the project was never built.
Pinetree Specialized Private Investment Trust and KEB Hana Bank, which provided the initial loan to the vacant lot, filed default notices on the loan and began the foreclosure process months ago.
Pine Tree Specialized and KEB Hana Bank found an investment group willing to manage the loan.
According to county records, ownership of the mortgage was assigned to Sol San Jose Owner, a real estate company based in Seoul, South Korea. Now, after going through a public sale, the property has new owners.
Loan underwriting documents filed in April reveal only sparse information about the new ownership group beyond its location in the South Korean capital.
The proposed hotel development was approved by the city but never built – located next to San Jose’s top golf entertainment, dining and golf complex.
A South Korea-based company operating as Mirae-San Jose paid $22.5 million to purchase land for a hotel site in 2019, according to county real estate records.
In 2019, San Jose city officials approved a 200-room hotel project at 7 Topgolf Drive, planning documents show.
The coronavirus outbreak hit the global economy in 2020, a year after the Mirae-San Jose group bought land for a hotel and acquired a financing package that ended in default and foreclosure.
The economic impact of the coronavirus is hitting travel and hotel markets around the world, including in the Bay Area. Hotel occupancy rates plummeted in the wake of the virus upheaval.
The economic uncertainty associated with the coronavirus is still casting a shadow over many hotel establishments, especially hotel projects.
The area’s most high-profile new development is the bustling and popular TopGolf San Jose Complex, opening in 2021.
Topgolf is a consistently popular entertainment, sports and dining center. Topgolf operates a high-tech driving range where you can hit golf balls with microchips that record distance and accuracy. The San Jose venue also has food and beverage outlets.
https://www.mercurynews.com/2023/05/01/san-jose-hotel-develop-build-foreclose-real-estate-covid-economy-tech/ San Jose Hotel Project Site Foreclosed In Real Estate Loan Foreclosure