SAN JOSE — A San Jose mission web site supposed to carry a brand new lodge — whose improvement future is murky attributable to coronavirus-linked financial woes — is now owned by a unit of the property’s lender after the formal completion of an actual property foreclosures.
The proposed lodge improvement — if constructed — would include 200 rooms and is situated in North San Jose’s Alviso district close to the Topgolf leisure, eating and golfing hub.
Pine Tree Funding & Administration, a South Korea-based actual property agency that acted by means of an affiliate, now could be the proprietor of the lodge improvement land, paperwork filed on Could 4 with the Santa Clara County Recorder’s Workplace present.
Via a trustee’s deed, the affiliate of Pine Tree Funding paid $27.6 million to purchase the land within the wake of a foreclosures continuing. The lodge web site is situated at 7 Topgolf Drive.
A unique South Korea-based agency, working as Mirae-San Jose, paid $22.5 million in 2019 for the lodge web site, which consists of three.2 acres of land.
San Jose metropolis officers permitted the 200-room lodge mission in 2019. Nevertheless, the lodge has by no means been constructed.
Quickly after the approval and the property buy, the coronavirus pandemic crippled the worldwide lodge and journey sector amid wide-ranging enterprise shutdowns throughout the globe. Inns within the Bay Space had been hit laborious.
Unbuilt resorts such because the Topgolf Drive mission face a very unsure future, particularly since present resorts are nonetheless trying to totally get well from their coronavirus-spawned maladies.
On the time of the acquisition in 2019, the group that had proposed the lodge additionally landed a $26.4 million mortgage from Pine Tree Specialised Personal Funding Belief.
The mortgage went into default in October 2022. On the time of the foreclosures continuing, the Mirae-San Jose improvement group owed $34.9 million in unpaid debt.
It wasn’t instantly clear whether or not Pine Tree Funding would try and develop the permitted lodge, modify the lodge plans, search a special sort of improvement, promote the property or let the land lie fallow.