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Lenders seize San Jose site approved for hotel after loan default
LBC Capital takes property approved for 132-room project tied to $4.6M debt
![Lenders Seize San Jose Site for Hotel After Loan Default](https://static.therealdeal.com/wp-content/uploads/2023/10/Lenders-Seize-San-Jose-Site-for-Hotel-After-Loan-Default-m-1400x875.jpg)
Lenders on a site approved for a 132-room hotel in San Jose have seized the property through foreclosure.
LBC Capital Income Fund, based in Los Angeles, and the Fogel Family Trust took ownership of the 0.9-acre property at 1510 South De Anza Boulevard after a foreclosure on a $4.6 million loan to North Star Hotel Development, the San Jose Mercury News reported.
North Star bought the lot with a 7,000-square-foot commercial building at South De Anza and Sharon Drive in 2019 for $6.5 million. Two years later, the San Jose-based developer took out the $4.6 million loan tied to the property.
The unpaid debt had climbed to $5 million when the foreclosure proceeding was completed, according to a trustee’s deed filed to mark its completion.
The foreclosure comes after several similar losses to developers of hotels planned before the pandemic in San Jose.
In May, South Korea-based Pine Tree Investment & Management seized a 3.2-acre site of a proposed 200-room hotel at 7 Topgolf Drive in the Alviso District.
In July, a San Leandro-based affiliate led by a gas station executive paid $4 million for the site of a proposed 11-story, 175-room hotel at 2850 Stevens Creek Boulevard after its owner faced foreclosure.
— Dana Bartholomew
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![Rendering of 2850 Stevens Creek Boulevard (Henry Cord, Getty)](https://static.therealdeal.com/wp-content/uploads/2023/01/feat-SF-Owner-of-175-room-hotel-project-site-in-San-Jose-faces-foreclosure-150x106.jpg)
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