An investment group led by Doo Lee and Joon Kim has defaulted on a $29 million loan linked to a 105,000-square-foot industrial campus in North San Jose.
The undisclosed group fell behind on the mortgage loan from Copia Lending backed by the vacant, two-building campus at 10 West Tasman Drive, the San Jose Mercury News reported, citing county real estate records.
The 8.4-acre property is owned by a limited liability company known as SB 125 Rio Robles, based at a commonly used virtual address in Santa Clara, according to a San Francisco Chronicle property database.
The investment group led by Lee and Kim bought the buildings in 2022 for $30 million. The deal included the buildings and a ground lease for the land.
The two-story, Class A campus contains two buildings, formerly occupied by Cisco, renovated in 2007, according to Colliers.
The loan default follows a domino of delinquent commercial properties in the wake of office vacancies brought on by a shift to remote work, higher interest rates, falling property values and difficult refinancing.
In December, Santa Monica-based Vista Investment Group defaulted on a $23.8 million loan tied to a 99,400-square-foot office building at 3100 North First Street in north San Jose, with the lender moving to seize the property. A receiver took control of the building in February.
— Dana Bartholomew
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