UPDATE: New housing plans are emerging for the long-abandoned Greyhound station in downtown San Jose. In a recently filed court document, Z&L Properties has proposed a new approach to revitalize the site amid looming foreclosure threats on its delinquent loan.
The property owner, through its affiliate Standard Properties, is shifting from previously planned high-rise condominiums to a more financially feasible medium-rise apartment development. This move comes as the company seeks to reorganize its finances under Chapter 11 bankruptcy, a process that could delay foreclosure proceedings initiated by the property’s lender.
The Greyhound station, located at 60 South Almaden Blvd. and 70 South Almaden Blvd., was originally purchased for $39.5 million in 2019. However, with the loan maturing in the same year, Z&L now faces an outstanding balance of approximately $21.2 million. The lender, a Texas-based affiliate led by real estate executives Chris Jiashu Xu and William Wang, has filed to terminate the bankruptcy case to allow foreclosure to proceed.
Officials have yet to disclose how many units the revised proposal will include, but the potential development could produce hundreds of new housing opportunities in a city grappling with a severe housing shortage. The San Jose Planning Department has not yet posted any new development proposals for the site, raising questions about the timeline for revitalization.
The urgency surrounding this situation is palpable. Foreclosure could lead to the auction of the Greyhound property, which has been valued between $29 million and $32 million, well above the loan amount. Standard Properties is exploring multiple strategies to secure the site, including a joint venture arrangement and making adequate protection payments to the primary loan holder.
In recent years, Z&L Properties has faced challenges in San Jose, with a history of complaints regarding a blighted historic church and the loss of other properties through foreclosure. This latest effort represents a critical moment for the company as it attempts to retain ownership of the Greyhound station and provide much-needed housing in the area.
As this story develops, residents and stakeholders are left wondering if these new plans will materialize and how they will impact the community. The situation remains fluid, and further updates are expected as the bankruptcy proceedings unfold.
Stay tuned for the latest developments on the Greyhound station and what it means for housing in San Jose.
