SAN JOSE \u2014 A San Jose apartment complex that is facing foreclosure over a failed loan has suffered a big decline in value and faces a murky future, court papers show.<\/p>\n
The Neo on First<\/a> residential hub is in default on a $21 million loan, and its owner has launched fights in two different court venues to delay or halt the foreclosure and a loss of the property.<\/p>\n The owner of the 50-unit apartment complex, which is at 955-975 South First St. near downtown San Jose, has filed for bankruptcy<\/a> and also has launched a lawsuit against the property\u2019s lender, according to court filings.<\/p>\n Appraisals that were filed as part of the Santa Clara County Superior Court lawsuit show that the apartment hub\u2019s value has plunged in recent years.<\/p>\n A Cushman & Wakefield appraisal in 2022 determined that the property had a value of $29 million.<\/p>\n In 2025, however, an appraisal conducted by Integra Realty Resources found that the apartment complex was valued at $22.9 million. That was barely above the loan amount and a 21% drop from the prior appraisal three years earlier.<\/p>\n The apartment complex\u2019s principal owner is a Cupertino-based business entity. The chief executive officer of the entity is listed as Xuhan Yu.<\/p>\n The San Jose residential hub\u2019s loan default is the latest example of widening problems in the Bay Area housing market.<\/p>\n The Neo complex is a few blocks from another San Jose apartment property that flopped into financial woes.<\/p>\n