SAN JOSE — A lender has canceled a loan default involving two San Jose office buildings, a welcome reversal that enables the owners of the buildings to stabilize their financing with fresh funding.
The office buildings are located at 1955 and 1961 The Alameda, a prime spot next to the interchange with Interstate 880.
1955 The Alameda in San Jose, an office building that totals 15,500 square feet, interior view. (Cushman & Wakefield)
Security National Life Insurance, which had provided the financing for the two buildings in April 2023, rescinded a loan default notice, according to documents filed on May 10 with the Santa Clara County Recorder’s Office.
The lender’s decision allows the building owners to scout for long-term funding for the two properties.
1955 The Alameda (L) and 1961 The Alameda (R), office buildings in San Jose. (George Avalos/Bay Area News Group)
The owners of the buildings hope to land a small business loan to replace the existing financing.
“We’re working on getting an SBA loan to replace the current loan,” said Claudia Folzman, a business executive who heads up the real estate entities that own the two buildings.
Folzman and David Edgar are listed as individuals who head up the ownership group for the 1955 The Alameda office building, public records show. Folzman is also listed as a person who heads up the group that owns the 1961 The Alameda building, according to county documents.
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Folzman and Edgar are principal executives with Iron Construction, according to that company’s website. Iron Construction leases the 1955 The Alameda office building, which totals 15,500 square feet.
1961 The Alameda totals 2,500 square feet. That building’s tenants include the Hispanic Foundation of Silicon Valley.
The Folzman-led groups that own the buildings have struck a deal with the lender to hold off on the default process and provide an extension on the loan to enable the SBA replacement financing to take effect.
The SBA approval process can be lengthy and involved, which means a timeline to obtain SBA funding wasn’t immediately clear.
What is certain is the tough rate environment that can make mortgages costly, in Folzman’s view.
“Interest rates are terrible right now,” Folzman said.
Part of the current financing was used for a wide-ranging interior upgrade for the 1955 The Alameda building that Iron Construction occupies.
“It is a stunning property with amazing interiors,” said Bob Staedler, principal executive with Silicon Valley Synergy, a land-use consultancy.
