Blighted San Jose Site Gets $23 Million Building Boost

The new owners of a blighted former Greyhound bus station in San Jose just got a $23 million infusion to help breathe new life into the site.

A Texas-based affiliate of a lender group including real estate developer Chris Jiashu Xu and business executive William Wang secured a financing package from three lenders, Philadelphia Life Insurance Company, New Era Life Insurance Company and New Era Life Insurance Company of the Midwest, after taking ownership of the property via foreclosure in October, the Mercury News reported.

The ownership group secured the site after China-based real estate firm Z&L Properties fell delinquent on a $19.5 million loan tied to the property, at 60 and 70 South Almaden Avenue. Z&L previously secured approval from the city of San Jose to build a 708-unit residential high-rise. Prior to the foreclosure seizure, Z&L sought to stave off losing the property through various legal proceedings, including a bankruptcy filing.

The $23 million financing package is below what would typically be required to pay for construction of a major residential development such as the one plotted by Z&L. Still, Xu, who signed the mortgage, is seemingly well-positioned to bring in more financing from other insurance companies, judging by the size of the financing deal, according to the Mercury News. Plans for the site are unclear.

The United Construction & Development Group founder has developed several large projects in the New York City area, including Skyline Tower, the second-tallest skyscraper in Queens, as well as other residential towers in the city.

The site’s new owners indicated in the U.S. Bankruptcy Court filing during proceedings with Z&L that they were prepared to build a large residential project on the bus station site.

“The vacant land at issue is a rotting, empty former Greyhound station,” the owner group said. “If allowed to proceed [with a foreclosure], [we have] the resources to develop this piece of property as originally entitled.”

— Chris Malone Méndez