San Jose tech building topples into default as office market struggles

San Jose tech building topples into default as office market struggles

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10 West Tasman Drive in north San Jose, an office and research building that totals 105,000 square feet.

SAN JOSE — A big San Jose tech building has toppled into a loan default, a financial setback that underscores the widening economic ailments that confront the Bay Area office market in the wake of the coronavirus outbreak.

The office building at 10 West Tasman Drive is now delinquent on its mortgage, according to documents filed on Dec. 15 with the Santa Clara County Recorder’s Office.

The loan that’s in default totals $29 million and was provided to the building’s ownership group in 2021 by Copia Lending, the county records show.

The building owner is a San Jose-based investment group whose executives include Doo Lee and Joon Kim, according to state business records.

The borrowers appear to have paid off a significant amount of the original $29 million loan before the financing became delinquent. The county documents show the property ownership group owed $20.3 million at the time of the default filing.

The San Jose-based building owners paid $30 million in 2022 for the property, including buying the structure and a ground lease for the land beneath the building, according to public real estate records.

The two-story building, located near the corner of West Tasman Drive and North First Street, totals 105,000 square feet. The office building is empty, this news organization’s direct observation of the property in recent days shows.

In the wake of the coronavirus, the Bay Area office market is undergoing seismic shifts.

Before the virus outbreak in 2020, the office market in the region was humming due to a seemingly insatiable appetite on the part of tech companies to find office spaces and property sites for their expansion. Biotech companies added to the leasing and property purchase frenzy.

The onset of the coronavirus, however, prodded state and local government agencies to impose draconian business shutdowns to help curb the spread of the deadly bug.

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