Loans secured for office building prevent auction

SAN JOSE >> A San Jose office building that had been seized through a foreclosure in recent years has managed — for the moment — to avoid a second auction and foreclosure after landing some financing.

The building, located at 826 North Winchester Boulevard in San Jose, had been scheduled to be auctioned off on Jan. 6, but the sale was canceled on Dec. 29, soon after it landed two new loans.

The new loans provided a combined $1.23 million in financing to an affiliate headed up by Kenneth Ryan Koch, a Grass Valley resident.

Tengjun Wang IRA provided about $728,300 in financing for the property and Emerson Vista provided $505,000 in funding, documents filed on Dec. 15 with the Santa Clara County Recorder's Office show.

A posting by the trustee in the pending foreclosure showed that the auction of the property was canceled as of Dec. 29.

A loan default notice that Socotra Capital, the principal lender for the property, had filed appears to remain in effect, however.

In December 2021, Socotra Capital provided a $6.45 million loan to finance the property. Until several days ago, Socotra was preparing to offer the property for auction or to seize it through foreclosure.

Since the start of the coronavirus outbreak nearly three years ago, the building has had a trio of owners and faced two foreclosure proceedings.

Numerous property transactions show that many investors still hunger for Silicon Valley office buildings despite current economic uncertainties.

Even so, the delinquent loans that have plagued the property are a reminder that more than a few commercial properties in the Bay Area are mired in financial woes.

The current string of owners for the property originated in the spring of 2020, a review of county real estate records shows.