West San Jose Property Faced Foreclosure After Loan Failure
A prominent site at 335 South Winchester Blvd. may soon head to auction due to unpaid debt.
Updated on Sept. 21, 2026 in Commercial
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A West San Jose property located at 335 South Winchester Blvd. has entered foreclosure following a failed $6.7 million real estate loan. The site, which previously housed a restaurant before its 2021 move to Campbell, is now facing a potential auction in the coming weeks.
Why it matters
This foreclosure marks the latest development for a high-profile parcel that once sought a $25 million valuation for a 75-unit apartment project. The site remains a point of local concern after code enforcement officials officially declared the property blighted on March 12, 2026.
The property carries a $6.7 million loan balance, a significant jump from its 2018 acquisition cost of $1.5 million. Although the owner previously listed the land for $25 million, that price was later reduced to $20 million before the current foreclosure proceedings.
The players
Pacific Row Development
A real estate entity that acquired the site in 2018 and later secured a multi-million dollar loan for development.
Golden Bank
The financial institution that provided the $6.7 million real estate loan now in default.
The details
The foreclosure process functions by transferring ownership from the developer, an affiliate of Pacific Row Development, to the lender or a new buyer through a public auction. This follows a period of stagnation at the 335 South Winchester Blvd. site, where code enforcement officers cited the premises for issues including graffiti, solid waste, and overgrown vegetation.
Timeline
2018: Pacific Row Development purchased the property.
2021: Loan obtained and restaurant relocated to Campbell.
2024: Apartment complex proposed and property listed for sale.
March 12, 2026: Code enforcement officer declared property blighted.
Next several weeks: Property could be auctioned off.
The Home Front
This site serves as a notable example of how stalled redevelopment projects can shift from speculative investments to local liabilities. It highlights the impact of municipal blight designations on property potential and the regulatory pressures facing developers in Santa Clara County.
Residents living near the 335 South Winchester Blvd. site should monitor local public auction notices for information on the future ownership of the parcel. Property owners in the area should keep property maintenance records updated to ensure compliance with Santa Clara County codes.
The takeaway
The transition of this high-value lot into foreclosure underscores the volatility of large-scale development projects. Neighbors can track local planning commission records for information on future site usage applications that may replace the stalled 75-unit apartment plan.
Further reading
For more on local development trends, see the latest updates in Commercial.
Source note: This article includes information reported by San Jose Mercury News.
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