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&L Properties, a Chinese-based developer, has defaulted on a $19.5 million loan tied to an unfinished housing project in Downtown San Jose. The loan, backed by the former Greyhound bus terminal at 70 South Almaden Avenue, was originally issued in 2019 from Shanghai Commercial Bank and purchased last September by a Houston-based investment group led by Chris Jiashu Xu and William Wang for an undisclosed price.

    Z&L Properties still owes $18.6 million on the loan. The company had initially planned to build two residential towers with up to 24 stories, housing 708 units along with shops and restaurants, but the project stalled in 2021 after a permit lapsed. This is the latest setback for Z&L, which has been plagued by issues including bribery charges against its owner Zhang Li.

    The company's troubles have left unfinished projects across the Bay Area, with only one completed project, a twin condominium tower at 188 West St. James Street in San Jose. The complex is also facing financial difficulties, with an unpaid principal debt of nearly $169 million as of October. Chris Jiashu Xu, co-owner of the loan on the unbuilt towers, has been actively developing properties in Queens, New York, and recently purchased most of Eastridge Center, a regional mall in east San Jose, for $135 million.