"SAN JOSE A lender is heading into the final stages of its efforts to seize ownership of The Fay through a foreclosure of a delinquent construction loan totaling $182.5 million. Documents filed with the Santa Clara County Recorder's Office show the lender could take back the 363-unit high-rise at 10 East Reed St. in the SoFA district before the end of the year."
"Real estate firm Scape, based in England, bought the site for $16.5 million in 2020. In 2021, the firm obtained a loan from a Madison Realty Capital affiliate to finance construction, county records show. Murro, a Scape brand, developed the 23-story tower. According to the foreclosure sale notice, the Scape affiliate owes $201.5 million, an amount that includes the loan's unpaid principal debt, late fees, interest, and penalties. Scape would have to repay the amount owed in full, or the property could be sold through an auction."
A lender is moving to seize The Fay via foreclosure after a delinquent construction loan originally totaling $182.5 million. County-recorded documents show the lender could retake the 363-unit high-rise at 10 East Reed St. in the SoFA district before year-end. Scape, a UK-based firm, purchased the site for $16.5 million in 2020 and obtained financing from a Madison Realty Capital affiliate in 2021. Murro, a Scape brand, developed the 23-story tower. A foreclosure notice states the Scape affiliate owes $201.5 million including unpaid principal, fees, interest, and penalties, or the property could be auctioned. City officials hope residents will boost nearby economic activity.
Read at www.mercurynews.com
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