San Jose apartment complex delinquent on loan, faces foreclosure
An apartment building near downtown San Jose is in default on its loan and could face foreclosure.
SAN JOSE — An apartment building near downtown San Jose has gone into default on its loan and now faces a potential foreclosure due to its delinquent mortgage.
The Neo on First is in default on $21 million in financing, according to documents filed on Sept. 4 with the Santa Clara County Recorder’s Office. CTBC Bank Corp. provided the loan that has become delinquent.
The 50-unit apartment complex is located at 975 South First St., a few blocks from the southern edges of downtown San Jose. The four-story property was built in 2020.
The San Jose residential hub’s loan default is the latest example of widening problems in the housing market in the Bay Area.
The Neo complex is a few blocks from another San Jose apartment property that is also in default on its financing.
In July, The Fay apartment complex at 10 East Reed St. in downtown San Jose went into default on its $182.5 million construction loan, county real estate records show.
The Fay is a 23-story residential tower with 336 units that opened with much fanfare in December 2024 as a housing complex that could help fuel a downtown San Jose revival if its residents dine, shop, drink and seek entertainment in the area.
The Neo on First offers amenities that include a bocce ball court, according to the website, which also touts its location near downtown San Jose.
The apartment complex’s principal owner is a Cupertino-based business entity called Neo Assets. The chief executive officer of the entity is listed as Xuhan Yu.
The ownership group for Neo at First developed the property after buying the site. In 2017, the Neo Assets ownership group paid $5.2 million to buy several parcels that provided the land for the eventual apartment complex, county records show.
A growing number of apartment properties in the Bay Area have tumbled into default on their mortgages in an environment of relatively high interest rates that make it tough to refinance existing loans. The loan default problems are particularly acute in Oakland.
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