Lender Seeks Foreclosure to Develop San Jose Greyhound Site
A lender is poised to develop hundreds of homes on the site of a former Greyhound bus terminal in downtown San Jose, contingent on a favorable ruling from a bankruptcy judge. The property, located at 60 and 70 South Almaden Ave., is currently embroiled in a foreclosure proceeding initiated by the lender, a Texas-based affiliate linked to real estate developers Chris Jiashu Xu and William Wang.
The owner of the site, an affiliate of China-based Z&L Properties operating under the name Full Standard Properties, filed for bankruptcy in July 2024 in a bid to reorganize its finances and retain ownership. The company’s chairman, Zhang Li, has previously proposed several projects in downtown San Jose, but only one has been realized.
In court filings, Full Standard Properties indicated its readiness to develop mid-rise apartment buildings on the site, a plan significantly scaled down from an original proposal that aimed to construct two high-rise towers with 708 condo units. The original city-approved permits for this larger project have expired, necessitating a new entitlement process for any future development.
The lender is seeking a ruling from U.S. Bankruptcy Court Judge Stephen Johnson that would facilitate the foreclosure of the property. In a filing dated September 15, 2024, the lender asserted its capability to develop the site as originally entitled, stating, “The vacant land at issue is a rotting, empty former Greyhound station.” The lender emphasized its resources for development, contrasting them with the uncertainties surrounding Full Standard Properties’ plans while in bankruptcy.
Full Standard Properties purchased the Greyhound terminal property in 2016 for $39 million from a group led by Bay Area executive Mark Tersini. In 2019, the company secured a $19.5 million loan from Shanghai Commercial Bank Ltd.. This loan was subsequently assigned to the Xu-controlled affiliate currently pursuing foreclosure.
The lending group criticized Full Standard’s financial strategy, claiming, “There have been no payments made, and there is no reasonable plan that may be confirmed.” They argued that the single-asset limited liability company does not generate income, leaving its future uncertain without a viable development plan.
While the lender has experience in various successful real estate projects, including a $135 million acquisition of the Eastridge Center shopping mall in East San Jose in January 2024, Full Standard Properties faces significant challenges in its attempt to regain control of the property. The outcome of the foreclosure proceedings may determine the future of the Greyhound site and its potential redevelopment as a residential area.
