BioSquare Campus Sells for 65% Less in Foreclosure
The San Jose office campus traded for $50 million, marking a major devaluation for the Silicon Valley commercial property.
Updated on Oct. 30, 2026 in Commercial
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South Bay Development Co. has acquired the BioSquare Silicon Valley office campus in San Jose through a foreclosure proceeding. The property sold for $50 million, a 65% decrease from its 2018 sale price.
Why it matters
The steep drop in value highlights the shifting economics for commercial real estate in the region as high debt levels become unsustainable for some owners. This transaction reflects the broader challenges for office campuses facing significant appraisal adjustments and financing hurdles.
The campus sold for $50 million, down 65% from the $144.5 million paid in 2018. The sale followed a foreclosure on $167.9 million in unpaid debt.
The players
South Bay Development Co.
A Los Gatos-based firm that manages and develops commercial real estate assets.
United Overseas Bank
A multinational financial institution that handles commercial loan portfolios.
Pimco
A global investment management firm known for managing large debt and fixed-income portfolios.
The details
South Bay Development Co. secured ownership by taking control of the loan previously held by United Overseas Bank. The firm acquired the asset after a real estate venture defaulted on its 2022 financing, which originally totaled $207 million. This transaction resets the property's valuation after a failed effort by the prior owners to revamp the office park.
Timeline
A PCCP-led group purchased the property for $144.5 million in 2018.
A real estate venture secured $207 million in financing in 2022.
Pimco assigned the loan to United Overseas Bank in December 2025.
United Overseas Bank transferred the loan to South Bay Development Co. in January 2026.
Money Landscape
This sale follows the peak of the 2022 commercial real estate financing cycle, marking a departure from the high valuations of that period. It reflects a reset in local commercial property values as debt obligations confront current market realities.
Local commercial real estate shifts can signal broader trends in neighborhood business health and tax base stability. Readers should monitor how office vacancy rates impact local services and long-term municipal planning in their specific districts.
The takeaway
Large-scale commercial foreclosures often signal a period of repricing for local office assets. Property owners and business tenants should track similar loan maturity data and local commercial appraisal trends to understand the long-term viability of office districts.
Further reading
For broader trends affecting area workspaces, see Commercial.
Source note: This article includes information reported by San Jose Mercury News.
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