"The Neo on First residential hub is in default on a $21 million loan, and its owner has launched fights in two different court venues to delay or halt the foreclosure and a loss of the property. The owner of the 50-unit apartment complex, which is at 955-975 South First St. near downtown San Jose, has filed for bankruptcy and also has launched a lawsuit against the property's lender, according to court filings."
"Appraisals that were filed as part of the Santa Clara County Superior Court lawsuit show that the apartment hub's value has plunged in recent years. A Cushman & Wakefield appraisal in 2022 determined that the property had a value of $29 million. In 2025, however, an appraisal conducted by Integra Realty Resources found that the apartment complex was valued at $22.9 million. That was barely above the loan amount and a 21% drop from the prior appraisal three years earlier."
"The San Jose residential hub's loan default is the latest example of widening problems in the Bay Area housing market. The Neo complex is a few blocks from another San Jose apartment property that flopped into financial woes. On Jan. 28, The Fay, a 23-story, 336-unit apartment tower at the corner of South First Street and East Reed Street, was foreclosed due to the failure of a $182.5 million construction loan."
The Neo on First, a 50-unit apartment complex at 955-975 South First St. in San Jose, is in default on a $21 million loan. The property's owner has filed for bankruptcy, launched a lawsuit against the lender, and pursued legal actions in multiple court venues to delay foreclosure. Appraisals show the value fell from $29 million in 2022 to $22.9 million in 2025, a 21% decline that left valuation barely above the loan amount. The principal owner is a Cupertino-based entity with CEO listed as Xuhan Yu. CTBC Bank is seeking to foreclose, amid wider Bay Area housing-market distress including recent foreclosures at The Fay and University Park.
Read at www.mercurynews.com
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