A San Jose office building near the city’s mega malls has been seized by its lender, putting an end to its financial troubles. Multiple housing projects were proposed for the site but failed to materialize, resulting in an eyesore for the community.
The building, located at 826 North Winchester Boulevard, had gone through foreclosure proceedings before ultimately being seized by the lender.
Under different lenders, the site underwent two foreclosure attempts, leaving behind a dilapidated building covered in graffiti that many considered an eyesore.
“The community deserves something far better,” commented Dr. Tal Solomon, the principal veterinarian at Arch Veterinary Services, which operates an animal hospital next to the office building. Solomon also owns the building where the veterinary center is located.
“We have experienced several fires in the past few months, one of which caused damage to the vet hospital,” Solomon added.
The delinquent mortgage lender, Emerson Vista, now owns the building after filing a default notice against the property.
In February 2023, Kenneth Ryan Koch, a resident of Grass Valley and owner of the San Jose property through an affiliate, proposed a project to demolish the office building and replace it with 137 apartment units. However, there is no evidence that the housing development plans progressed beyond an initial filing with the San Jose Planning Department.
Documents from the Santa Clara County Recorder’s Office show that Emerson Vista completed the foreclosure on June 29.
This was the second attempt to develop housing on the site, as a previous group that owned the property before Koch also faced foreclosure on a delinquent loan.
It is unclear what Emerson Vista’s plans are now that they own the property. Typically, lenders try to sell their foreclosed properties quickly.
Solomon believes that previous housing proposals failed due to the unusual L-shape of the parcel and the site’s limited size, making new development less feasible.
“I am tired of dealing with this issue,” Dr. Solomon expressed in the email comments. “I want to buy and demolish it.”