SAN JOSE — A housing development site in San Jose is in default on its real estate loan — again — after a mortgage delinquency that leaves the property facing foreclosure.
The residential project site at 51 and 65 Notre Dame Ave. in downtown San Jose faces a default on a $10 million loan, according to a document filed on Sept. 12 with the Santa Clara County Recorder’s Office.
Acquity Realty, acting through an affiliate, owns the property, which the Bay Area real estate firm bought in 2021, paying $20 million for the site. The site is at the corner of Notre Dame Avenue and Carlysle Street.
West Coast Community Bank filed the loan default against the property, county records show. West Coast was previously known as Santa Cruz County Bank, which in 2021 provided the loan that’s now in default for a second time.
Acquity Realty has proposed multiple types of projects at the site.
The real estate firm’s visions for the property started out with a proposal for a mixed-use retail, dining, housing and office tower, a unique blend of components that was approved by city officials. The 21-story project never broke ground.
The latest version for the site, which emerged when Aquity Realty put the four-parcel property up for sale, envisions a 148-unit mid-rise development with 4,700 square feet of ground-floor retail spaces.
The property ownership group is seeking $12.5 million to sell the property, whose long-time occupant was Andy’s Pet Shop. In 2021, the store was bulldozed to clear the way for a project that has yet to be built.
In the most recent version of the development site, project amenities would include a penthouse roof lounge, a pool area and lounge, an 8th-floor roof deck lounge, a ground-floor fitness center, and residential and retail lobbies, according to a marketing flyer circulated by commercial real estate firms Newmark and Kidder Mathews.
The site had previously been appraised at $37.5 million, according to the marketing flyer. It wasn’t clear when that appraisal occurred or if a more recent value estimate was available.
In 2021, an Acquity Realty executive said the real estate firm’s affiliate had obtained the financing it needed to launch the project’s construction, but ground was never broken.
In August 2024, the project’s lender filed a loan default. However, in September 2024, the lender rescinded the delinquency notice, ending that foreclosure threat.
Despite the financial uncertainties, the property owner and its brokers believe the development site has a favorable location.
“51 Notre Dame Ave. offers residents the perfect balance, a superb residential experience in a vibrant, walkable neighborhood,” the marketing materials state.
