Nine-story office building at 152 North Third Street in downtown San Jose, seen in 2018. (George Avalos/Bay Area News Group)
SAN JOSE — A downtown San Jose property linked to the co-founder of WeWork and once part of a plan to convert the office building to housing tumbled into default due to a failed loan, documents show.
The nine-story building at 152 North Third St. and next to St. James Park defaulted on a $45 million loan that was issued in 2021, documents filed on July 15 at the Santa Clara County Recorder’s Office show.
The building is owned by a group controlled by Nazare Capital Management, whose principal executive and founder is Adam Neumann, co-founder of WeWork. The site totals 130,700 square feet, a property brochure states.
At the time of the default, the Neumann-linked group owed $37.5 million.
The group paid $44 million to buy the building in 2018, county documents show. The office hub is mostly empty, except for Freshly Baked Eatery, a sandwich shop on the ground floor.
It was never clear what Neumann’s group intended to accomplish with its ownership of the building.
In 2025, plans were floated to convert the building’s office spaces into residential units. A preliminary proposal envisioned 133 apartments, with residences on every floor of the structure.