The Fay, a 23-story apartment building in San Jose, is in default on a $182.5 million construction loan. This situation serves as a significant indicator of difficulties within the multifamily residential market. The building, which has 363 units and is located in the SoFA district, was initially celebrated at its opening in December 2024. As of June 30, the total amount owed by the owner, affiliated with Scape, rose to $189.9 million due to accrued interest and penalties. The potential for foreclosure raises uncertainty about the building's future.
The Fay, a 23-story apartment building in downtown San Jose, is in default on a $182.5 million construction loan, indicating weakness in the multifamily residential market.
As of June 30, the Scape affiliate owed $189.9 million due to interest, late fees, and penalties, raising concerns about the future of the property.
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