Machine Investment Group Starts Work on San Jose Condos

After years of delays, lawsuits and foreclosure drama, the partially completed two-tower condo project at 188 West Saint James Street in downtown San Jose is drawing a crowd.

Roughly 500 prospective buyers have signed up for a waiting list to purchase units in the 640-unit downtown development owned by Machine Investment Group, the Mercury News reported. 

That level of demand for a condo offering is “unheard-of,” said John Tashjian of Centurion Real Estate Partners, which manages the property. 

The project consists of a 20-story building with 303 units and a 22-story tower with 337 units. 

Prices range from $429,000 for studios to $1.8 million for penthouses. That pricing could attract younger buyers who are priced out of single-family homes, David Taxin, a partner with San Jose-based commercial real estate firm Meacham/Oppenheimer, told the Mercury News. 

A Machine Investment affiliate took control of the property last June through a foreclosure that valued the property at $181.9 million. China-based Z&L Properties defaulted on a $330 million construction loan in late 2024. 

Z&L faced construction setbacks and defects, claims that some workers were forced to live in an East Bay warehouse, allegations of slave labor and a construction worker’s death. Z&L also created a confusing mix of for-sale and rental units. Z&L eventually ran out of money and gave up trying to save the project. 

The new ownership is spending $30 million to reposition the property, including $6 million set aside for upgraded amenities, a revamped lobby and pool areas. Renovation work is expected to begin this month. 

The city of San Jose’s efforts to revitalize its downtown include offering zero business tax and free parking for two years to tenants signing new leases. It’s also looking to cash in on the artificial intelligence boom, offering cash incentives to AI firms that relocate to San Jose.

— Chris Malone Méndez

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