San Jose apartment complex delinquent on loan, faces foreclosure

SAN JOSE An apartment building near downtown San Jose has gone into default on its loan and now faces a feasible foreclosure due to its delinquent mortgage The Neo on First is in default on million in financing according to documents filed on Sept with the Santa Clara County Recorder s Office CTBC Bank Corp provided the loan that has become delinquent The Neo on First an apartment complex at South First Street south of downtown San Jose seen on Sept George Avalos Bay Area News Group The -unit apartment complex is located at South First St a insufficient blocks from the southern edges of downtown San Jose The four-story property was built in Related Articles Density slashed in East Bay housing advancement Bill to boost housing near transit passes But one Bay Area county got an out San Jose housing tower project site once home to popular pet shop faces foreclosure Walters Political friction percolates over housing program workers comp payouts Downtown Berkeley apartment complex bought by East Bay investor The San Jose residential hub s loan default is the latest example of widening problems in the housing sector in the Bay Area The Neo complex is a sparse blocks from another San Jose apartment property that is also in default on its financing In July The Fay apartment complex at East Reed St in downtown San Jose went into default on its million construction loan county real estate records show The Fay is a -story residential tower with units that opened with much fanfare in December as a housing complex that could help fuel a downtown San Jose revival if its residents dine shop drink and seek entertainment in the area The Neo on First offers amenities that include a bocce ball court according to the website which also touts its location near downtown San Jose The apartment complex s principal owner is a Cupertino-based business entity called Neo Assets The chief executive officer of the entity is listed as Xuhan Yu The ownership group for Neo at First developed the property after buying the site In the Neo Assets ownership group paid million to buy several parcels that provided the land for the eventual apartment complex county records show A growing number of apartment properties in the Bay Area have tumbled into default on their mortgages in an habitat of relatively high interest rates that make it tough to refinance existing loans The loan default problems are particularly acute in Oakland