Key site near malls avoids foreclosure, going up for sale

Office tower, medical highrise, hotel could be built on the site

SAN JOSE >> Two key properties across the street from a big San Jose mall are up for sale and could become the site of a new office tower, medical highrise, or hotel.

The sites are located at 2812 and 2850 Stevens Creek Blvd. in San Jose and are across from the Westfield Valley Fair mall and down the street from Santana Row.

The 2850 Stevens Creek site is already approved for the development of an 11-story hotel and now is occupied by a gasoline station.

In October 2021, the property fell into default on its mortgage and was facing foreclosure. It was even scheduled to be auctioned off to the highest bidder.

However, the property owner, an affiliate that's headed by Adeel Mahmood, principal executive with Villa Developers & Investment, cured the default and rescued the property from foreclosure. Mahmood's group still owns the site.

David Taxin, a partner with Meacham/oppenheimer, a commercial real estate firm, came up with the idea of attempting to sell both the 2850 Stevens Creek site and the adjacent parcel at 2812 Stevens Creek in a package deal.

Together, the sites total 1.3 acres, according to Taxin. If the properties were to be acquired by the same buyer, a high-density development could be possible on the newly fashioned site.

“We went to the neighbor and we are marketing the two parcels as a single development site,” Taxin said.

The adjacent site is owned by an affiliate headed up by the Sal Cala family, a real estate investment group.

“The parcels together would give you a property where you could go at least 10 stories with a building,” Taxin said.

A combined site would wield a high-profile location fronting on Strevens Creek between South Monroe Street and South Clover Avenue.

“The parcels together give us a much broader audience,” Taxin said.

San Jose city officials are seeking higher densities along the stretch of Stevens Creek Boulevard between Interstate 880 and Winchester Boulevard.

In the package deal scenario, the combined site would be offered for sale at $25 million, Taxin said.