San Jose Property Faced Foreclosure After Loan Failure
The commercial site at 335 South Winchester Blvd. may be auctioned off in the coming weeks due to unpaid debt.
Updated on Sept. 21, 2026 in Commercial
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A West San Jose property located at 335 South Winchester Blvd. is currently facing foreclosure following a failed $6.7 million real estate loan. The site, previously home to a restaurant that relocated to Campbell in 2021, may be sold at auction in the near future.
Why it matters
The foreclosure follows a failed effort to redevelop the site into a 75-unit apartment complex, leaving the property's financial future uncertain. Ownership could soon transition to a new buyer or the lender through an upcoming auction process.
The property carries a $6.7 million loan balance, a significant increase from its $1.5 million purchase price in 2018. After listing attempts failed at $25 million and $20 million, the site was declared blighted on March 12, 2026.
The players
Pacific Row Development
A developer that secured a $6.7 million loan for the San Jose site in 2021.
Golden Bank
The lender that provided a $6.7 million loan to the developer in 2021.
The details
The foreclosure process transfers control of the property from the developer, an affiliate of Pacific Row Development, to the lender or a new owner. Code enforcement officials have flagged the site for maintenance issues, including graffiti, overgrown vegetation, and solid waste. These conditions have complicated the path for the proposed 75-unit apartment project.
Timeline
2018: The property was purchased by the developer for $1.5 million.
2021: The developer obtained a $6.7 million loan for the site.
March 12, 2026: A code enforcement officer declared the property blighted.
Next several weeks: The property could be auctioned off.
Money Landscape
This situation highlights the intersection of debt obligations and local municipal code enforcement requirements. It reflects a difficult period for developers struggling to move forward with new apartment construction amid shifting commercial real estate valuations.
Property owners and investors in the area should note that maintenance violations can trigger official blight declarations, which may complicate refinancing or resale efforts. Consult with a qualified real estate professional to understand how local code enforcement impacts property value and loan compliance.
The takeaway
The property's transition to foreclosure serves as a reminder of the risks tied to highly leveraged development projects. Investors should keep an eye on upcoming foreclosure auctions in Santa Clara County for potential shifts in local property ownership.
Further reading
Learn more about local market conditions in the Commercial section.
Source note: This article includes information reported by San Jose Mercury News.
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