SAN JOSE — Two smaller San Jose office buildings perched on a prominent site have toppled into a loan delinquency, fresh evidence that the economic woes still hound the Bay Area office market.
The office buildings, located on The Alameda near downtown San Jose, could be seized through foreclosure if the loan isn’t repaid or a restructuring of the financing isn’t accomplished.
1955 The Alameda, an office building in San Jose. (George Avalos/Bay Area News Group)
The two buildings are located at 1955 and 1961 The Alameda and are next to each other adjacent to an interchange with Interstate 880.
Each building is in default on a $6.7 million loan, according to documents filed on May 2 with the Santa Clara County Recorder’s Office.
Security National Life Insurance provided the financing for the two buildings in 2022.
In a time of high interest rates, a growing number of owners of commercial real estate properties are choosing to yield control of the buildings to their lenders because it’s becoming tougher for building owners to land replacement financing.
It wasn’t clear from the public records when the financing for the two office buildings might mature.
The ownership groups for the buildings are based in the South Bay.
Claudia Folzman and David Edgar are listed as individuals who head up the ownership group for the 1955 The Alameda office building, according to county real estate records. Folzman is listed as a person who heads up the group that owns the 1961 The Alameda building.
Folzman and Edgar also are principal executives with Iron Construction, according that company’s website. Iron Construction also is a tenant in the 1955 The Alameda office building, which totals 15,500 square feet, according to LoopNet.
1961 The Alameda totals 2,500 square feet. That building’s tenants include Hispanic Foundation of Silicon Valley.
This news organization sent an email to Folzman requesting a comment regarding the situation.
