The Bay Area’s shaky real estate market received another blow as a vacant San Jose office property was foreclosed and seized by its lender.
According to a Mercury News report, The Evergreen Advantage seized the 78,200-square-foot property at 5729 Fontanoso Way through a foreclosure that valued the building at $24.5 million. In a May 14 filing with a Florida-based bankruptcy court, Evergreen Advantage said two recent appraisals valued the property at $21.8 million – court-referenced appraisals were 20.4% below the January 2023 County Assessor’s Office value of $27.4 million, the acquisition price paid by the prior owner in 2022.
The property’s former owner, Atlas Capital Investments, filed for bankruptcy last November. The company’s last tenant, Khloris Biosciences, leased the property in 2021. Both Atlas and Khloris listed Lynne Bui as their principal – Bui filed for Chapter 11 bankruptcy last year.
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