West San Jose Property Faced Foreclosure
A commercial site on Winchester Boulevard may head to auction following a failed real estate loan.
Updated on Sept. 21, 2026 in Commercial
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A property at 335 South Winchester Blvd. in San Jose has entered the foreclosure process due to a defaulted loan. The site, which once hosted a restaurant, was previously listed for as much as $25 million.
Why it matters
The foreclosure follows a failed real estate loan, marking a significant turn for a site that was recently marketed for a large residential redevelopment project.
The property, initially purchased for $1.5 million, carried a $6.7 million loan. It was listed for $25 million in 2024 before the price was reduced to $20 million.
The players
Pacific Row Development
This real estate firm is the entity that purchased the property and obtained the $6.7 million loan.
Golden Bank
This financial institution is the lender that provided the $6.7 million loan to Pacific Row Development.
The details
The site at 335 South Winchester Blvd. was declared blighted by a code enforcement officer on March 12, 2026, due to issues including graffiti and overgrown vegetation. Pacific Row Development, which owns the site, had previously proposed a 75-unit apartment complex for the location.
Timeline
Pacific Row Development purchased the property in 2018.
The developer obtained the loan and the restaurant relocated in 2021.
The property was listed for sale in 2024.
A code enforcement officer declared the site blighted on March 12, 2026.
The property could be auctioned within the next several weeks.
Culture Shift
The property's official blight declaration follows a documented trend in San Jose of increased municipal scrutiny on underutilized commercial real estate. This regulatory pressure often accompanies the failure of high-density redevelopment plans as developers struggle with financing.
The site is currently under scrutiny for code violations including graffiti and waste, which directly impact the surrounding area's appearance. Neighbors may see continued site inactivity until an auction clarifies future ownership and development plans.
The takeaway
The stalled redevelopment highlights the challenges of speculative commercial investment in the current market environment. Investors should be aware of the regulatory risks associated with properties that remain vacant after failed development proposals.
Further reading
For more on local business development, visit Commercial.
Source note: This article includes information reported by San Jose Mercury News.
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