The Fay apartment building in San Jose has defaulted on a $182.5 million construction loan, indicating weaknesses in the multifamily residential market. The 23-story tower features 363 units in the SoFA district, opened in December 2024 to boost downtown vibrancy. The default raises concerns over ownership, as the lender could foreclosure and auction the building. As of June 30, the owed amount reached $189.9 million, exceeding initial financing due to accrued fees and penalties. This case illustrates ongoing economic challenges affecting real estate developments.
The Fay, a 23-story apartment building in San Jose, is in default on a $182.5 million construction loan, signaling weakness in the multifamily residential market.
The apartment tower, completed in late 2024, is now a focal point in San Jose's downtown, yet faces potential foreclosure due to loan delinquency.
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