Secured Income lists office-retail site in San Jose

Secured Income has listed a 15,500-square-foot office and retail complex it had seized through foreclosure in San Jose with an asking price of up to $5.8 million.

The San Jose-based lender has put the two unfinished buildings at 2726 and 2752 Goble Lane up for sale, the San Jose Mercury News reported. The target price is between $350 to $375 per square foot.

Secured Income Fund II seized the property early last year after its developer defaulted on a $6 million mortgage. The developer, a group led by San Jose-based Adeel Mahmood, was delinquent in the spring of 2021.

The lender paid $1 million to take control of the office and retail buildings, even though the unpaid debt, including finance charges, late fees and penalties, totaled $7.2 million at the time of the foreclosure.

Mahmood had tried to sell the complex — which has the outside complete but the interior unfinished — but got no takers.

The two buildings between Umbarger Road and Lewis Road near the busy Monterey Highway each contain 7,750 square feet. Secured Income has striped its parking lot, repaired broken windows and put up a security fence.

Meacham Oppenheimer holds the listing for what appears to be a single-story building with red-tile accents.

“The prior owner was probably attempting to sell it for $500 to $600 a square foot,” David Taxin of Meacham Oppenheimer told the Mercury News. “We want to sell it for about $350 to $375 a square foot.”

“We have gotten fairly good interest from buyers,” he said. “We would anticipate being able to sell this to an owner-user.”

Mahmood, head of Los Altos-based Villa Developers & Investment, defaulted on a $6.7 million loan in March tied to the site of an approved 11-story hotel at 2850 Stevens Creek Boulevard in West San Jose. The parcel was set to be sold at auction.

— Dana Bartholomew