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.