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foreclosure auction for a $264 million loan on two San Jose housing towers is set to take place in early February, according to public records. The loan was issued in 2019 for the construction of the buildings, which comprise around 600 units at 188 West St. James Street. FPP MB, an affiliate of China-based Z&L Properties, owns the residential complex in the San Pedro Square neighborhood.

    The owner has faced financial struggles in repaying the loan, with a court filing stating that the issue had been resolved. However, a notice of default was filed by the primary lender in October 2024, citing unpaid principal debt of around $169 million. The amount has since increased to $212.5 million, including interest, late fees, and penalties.

    This development is part of a growing string of failures for Z&L Properties' real estate empire in San Jose. Other struggling projects include the 43 East St. James Street site, where an old church remains neglected, and the 60 and 70 South Almaden Avenue site, which was proposed for a 708-unit housing complex but has fallen into disrepair.

    The two completed high-rise towers at 188 West St. James are the only successful projects of Z&L Properties' affiliates in San Jose. The company had previously planned to develop several other sites, including a large housing project on West St James Street and Terraine Street, which was eventually sold to a real estate alliance.