SAN JOSE — An office building in San Jose has been in and out of foreclosure proceedings, not only has it become an eyesore, but it could also be bulldozed and replaced with more than 100 apartments.
The building is ideally located at 826 North Winchester Boulevard near the Mega Mall in San Jose. Despite its prime location, the property has suffered a tumultuous financial history.
The site has already been seized by the 2021 Foreclosure. In 2022 and this year, the site faced another loan foreclosure threat. The building was neglected, scuffed with graffiti and deemed an eyesore by at least one neighbor who contacted the news outlet about the unsightly situation.
The building was scheduled to go up for auction on January 6, but the foreclosure sale was reversed on December 29, shortly after winning two new loans.
The new loan provided loans totaling $1.23 million to affiliates led by Grass Valley resident Kenneth Ryan Koch, who owns San Jose properties.
Now, according to documents filed with San Jose planners, there is hope that the site can be reimagined as a mixed-use residential and commercial development.
“Demolition of a two-story office building and construction of a five-story mixed-use building with 137-unit multi-family housing” is a key component of the proposal, according to the City Planning File.
The development also includes approximately 3,200 square feet of commercial space, which could be a combination of retail or restaurant space, according to city documents.
The L-shaped property has frontage on both North Winchester Boulevard and West Heading Street.
In another real estate proceeding on January 25, two commercial properties in Los Gatos owned by Koch through another affiliate were seized by the lenders of those sites in a $7 million foreclosure auction.
The San Jose site Koch still owns and plans to redevelop as a home is just a stone’s throw from the Westfield Valley Fair and the Santana Row Mall. In addition, Santana Row also has four large office buildings.
So Koch’s proposed home on North Winchester Boulevard could be attractive to those who work nearby. His NetApp and Splunk technology companies have their primary San Jose offices in Santana Row.
It’s not clear how much time the owner of the San Jose office bought the property recently landed two financing packages.
San Jose’s lengthy approval process for new developments can often last close to a year or longer.
https://www.mercurynews.com/2023/02/09/san-jose-housing-home-develop-build-loan-default-real-estate-eyesore/ San Jose real estate loan defaults eyesore property could become residential land