Z&L Properties Facing Foreclosure Amid Bay Area Troubles

Z&L Properties is facing foreclosure on a former Greyhound bus terminal in San Jose.

Full Standard Properties, an affiliate of the China-based Z&L, is in default on a $19.5 million loan for the property at 60 South Almaden Boulevard and 70 South Almaden Boulevard, and the property is poised to head to auction, The Mercury News reported. Lender Shanghai Commercial Bank intends to conduct a foreclosure proceeding next month if the delinquent loan, issued in 2019, isn’t fully paid off, documents filed with the Santa Clara County Recorder’s Office show.

Z&L’s affiliate bought the property in 2016 from a group headed by Bay Area real estate executive Mark Tersini for $39 million. The planned project would have created 708 units of housing at the former Greyhound bus depot across two towers. The project received approval from the San Jose City Council in 2017 but never began construction.

The building fell into disrepair, prompting San Jose city code compliance officers to step in and issue warnings against the company.

“From November of 2018 through December of 2024, the subject property was monitored for blight as part of the Neglected Vacant Building and Storefronts Monitoring Program,” the city report states, per the Mercury News. “During this period, code enforcement observed graffiti present on the structure for extended amounts of time.”

The Greyhound project is the latest development in San Jose that Z&L planned and never followed through with. At 43 East Saint James Street, Z&L agreed to protect and renovate an old church and build housing towers on the site, though it was neglected and the housing development never materialized.

Z&L also proposed a large housing development at 323 Terraine Street but similarly never broke ground. It eventually sold that property to Westbank for $11.4 million.

Earlier this month, a Machine Investment Group affiliate bought two residential towers in downtown San Jose from Z&L through a fast-track foreclosure proceeding. The twin 22-story high-rises at 188 West Saint James Street sold for a total of $181.9 million.

— Chris Malone Méndez