SAN JOSE — Bay Area real estate investors have bought a San Jose site that toppled into foreclosure due to a delinquent loan — but the property’s future wasn’t immediately certain despite the purchase.
A nondescript property at 1510 South De Anza Boulevard in southwest San Jose has been bought for $5.5 million, according to documents filed on April 5 with the Santa Clara County Recorder’s Office.
132-room, four-story hotel at 1510 South De Anza Boulevard in San Jose, concept. (Lowney Architecture)
At one point, a hotel was proposed for the property.
The site, located at the corner of South De Anza Boulevard and Sharon Drive, totals 0.9 acres, according to a county real estate database.
The buyers bought the property through an all-cash deal, county records show.
Weijia Que, based in Dublin; and Xinghua Hu, based in San Jose, are listed as the principal managers of HQS LLC, the affiliate that bought the property, state business records show.
In September 2023, LBC Capital Income Fund and family members who head the Fogel Family Trust seized ownership of the property through foreclosure of a delinquent loan for the site.
The lenders foreclosed on a $4.6 million loan they had provided in 2021 to the site’s prior ownership group.
That previous group, North Star Hotel Development, had pitched a 132-room hotel for the site. The hotel was never built.
It appears the site’s value has eroded, based on a comparison of the two most recent purchase prices for the property.
In 2019, the North Star Hotel group paid $6.5 million to buy the property. The difference in the prices points to a 15% decline in the property’s value over the five years.
It wasn’t immediately clear what plans the new owners might envision for the property. The commercial building is shown as empty, according to Google Maps.
The coronavirus outbreak in early 2020 unleashed brutal economic blows against the hotel and lodging sector in the Bay Area and worldwide.
These economic maladies suggest hotel development is a risky proposition at best.