San Jose housing and retail project site escapes default and is bought
The site of a housing project in San Jose has been bought by a local investor.
SAN JOSE — The site of a housing project in San Jose has been bought by a local investor just days after the property had toppled into a loan default.
At one point, the seller of the property, Century Tower LLC, had proposed a five-story housing development along with ground-floor commercial spaces, a project that would have produced 16 residences.
The property is located at 395 South Winchester Boulevard in San Jose, across the street from Santana Row, a destination mixed-used restaurant, retail, office, housing, hotel and entertainment center.
Century Tower, which was headed up by San Jose-based real estate investor Fred Mayer, had proposed the mixed-use development. The project has yet to be built, however.
On Oct. 3, Santa Cruz County Bank filed a notice of default against the property’s loan, stating that the Century Tower group had become delinquent on a $3 million mortgage that was issued in 2020.
Just a few days later, a new ownership group, operating as 395 S Winchester Blvd LLC, bought the property for $4.8 million, according to documents filed on Oct. 5 with the Santa Clara County Recorder’s Office.
The new purchase suggests the property is suffering a declining value.
In 2019, the Century Tower group paid $5.5 million for the site. About a year later it obtained the loan from Santa Cruz County Bank that went into default.
The new owner of the site is a group based at a Fremont address where Lynx Logistics operates. Lynx Logistics is headed up by Francisco Garcia, who is also listed as the agent of the purchasing entity.
At present, a music instruction business known as Dr. Ming Li’s Flute Studio operates on the site, according to Google Maps.
The original development plans envisioned the demolition of the commercial building to clear the way for the housing and mixed-use project.
The new owner’s plans for the site weren’t immediately clear.