Foreclosed San Jose office building finds buyer at discount

SAN JOSE — A San Jose office building that was seized through a foreclosure has landed a buyer at a discount in a deal that could result in lower rents to attract tenants — and jobs — to the property.

Bay Area real estate firm Menlo Land & Capital paid $9 million for the 75,900-square-foot building at 2290 North First St., according to documents filed on Aug. 1 with the Santa Clara County Recorder’s Office.

The purchase price is 56.1% below its assessed value of $20.5 million.

The building’s prior owner, an affiliate owned by a group tied to Case Swenson, CEO of San Jose-based real estate company Swenson, lost ownership of the property in March through a foreclosure after going into default in November 2024.

The lender, Prime Finance Short Duration Holding Co., took ownership of the building after it foreclosed on the $12 million loan it had provided to the Swenson-linked affiliate in 2021, county real estate records show.

Property value outcomes can affect revenue for an array of public agencies. Here are some recent examples of San Jose office buildings that have struggled financially:

— 3100 North First St. was foreclosed and seized by its lender at a value of $19 million in May 2024. It was then bought for $17.5 million by biotech company Vibrant Wellness in September.

— 10 West Tasman was taken back by its lender through a foreclosure in October 2024 for $23.7 million, below its assessed value of $51.3 million. The foreclosure occurred despite the former owner’s efforts to forestall it by filing for bankruptcy.

— In June, E Ink Corp. bought a San Jose office building at 3200 North First St. for $22.7 million in a deal that gives the firm a large space for its operations. A court-ordered receivership proceeding forced the property to be put up for sale.