San Jose housing site near two mega malls dodges default and is bought
Property is bought just days after loan default
SAN JOSE, Calif. — A local investor has purchased the site near two of San Jose’s mega malls where a housing project was proposed, just days after the property went into loan default.
Century Tower LLC, the property’s seller, had proposed a five-story housing development with ground-floor commercial spaces, resulting in 16 residences near Westfield Valley Fair and Santana Row. Century Tower was built by Fred Mayer, a San Jose-based real estate investor. However, the project has yet to be built.
The property is located at 395 South Winchester Boulevard, directly across from Santana Row, a popular mixed-use restaurant, retail, office, housing, hotel, and entertainment complex.
Santa Cruz County Bank filed a notice of default against the Century Tower group’s loan on Oct. 3, stating that the Century Tower group had fallen behind on a $3 million mortgage issued in 2020.
Only a few days later, a new ownership group known as 395 S Winchester Blvd LLC paid $4.8 million for the property, according to documents filed with the Santa Clara County Recorder’s Office on Oct. 5.
According to a review of the property’s grant deeds, the new purchase indicates that the property’s value is declining.
The Century Tower group paid $5.5 million for the site in 2019. It obtained the defaulted loan from Santa Cruz County Bank about a year later.
The site’s new owner is a group based at a Fremont address where Lynx Logistics operates. Francisco Garcia, who is also listed as a principal executive for the purchasing entity, leads Lynx Logistics.
According to Google Maps, a music instruction business known as Dr. Ming Li’s Flute Studio is currently operating on the site.
The original development plans called for the commercial building to be demolished to make way for the proposed housing and mixed-use development on the property.
It was not immediately clear what the new owner plans to do with the site now that the purchase has been completed.
