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commercial building at a prime location in downtown San Jose has defaulted on its loan, highlighting the Bay Area's struggling real estate market. The property, located at 478 East Santa Clara Street, is now facing financial difficulties due to widespread problems plaguing the region's office, retail, and hotel sectors.
The default is part of a growing trend affecting commercial properties in downtown San Jose, Oakland, and San Francisco. Office spaces are sitting empty, rents are declining, and vacancies are soaring, all contributing to a deteriorating market. According to county records, an affiliate operating as Santa Clara Plaza 478 has defaulted on a $1.2 million loan.
The two-story building, which spans approximately 8,100 square feet, is home to several businesses, including insurance and dental offices. The default highlights the challenges facing commercial property owners in the Bay Area, where real estate values have plummeted and economic uncertainty persists.
