San Jose office building seized in foreclosure process

A major office building in San Jose has been taken over by a lender after a foreclosure. This event highlights the ongoing decline in the value of commercial properties in the Bay Area. The property, located at 2290 North First Street, was previously owned by a group connected to Case Swenson, CEO of Swenson, a well-known real estate firm in Northern California. The foreclosure took place on March 24 as part of a trustee's sale, which was attended by news representatives. The lender, Prime Finance Short Duration Holding Co., gained ownership after seizing the building due to an unpaid $12 million loan. Records show that the property is now valued at just under $9 million, which is about 55% less than its assessed value in early 2024. This building is not alone in facing financial troubles. Other office buildings in North San Jose have also been foreclosed and sold for much lower than their estimated values. For example, a building at 3100 North First Street was seized in May 2024 and resold for $17.5 million, well below its prior estimated value of over $32 million. There are ongoing challenges in the Bay Area office market. This situation serves as a reminder that even established firms like Swenson can experience financial difficulties. As of now, it is unclear how much of the 75,900 square feet of the office building was occupied at the time of the foreclosure.