{"id":250227,"date":"2026-04-03T15:52:09","date_gmt":"2026-04-03T15:52:09","guid":{"rendered":"https:\/\/www.newsbeep.com\/us-ca\/250227\/"},"modified":"2026-04-03T15:52:09","modified_gmt":"2026-04-03T15:52:09","slug":"blighted-building-in-downtown-san-jose-faces-extra-city-scrutiny","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/us-ca\/250227\/","title":{"rendered":"Blighted building in downtown San Jose faces extra city scrutiny"},"content":{"rendered":"

SAN JOSE \u2014 A site of blight in downtown San Jose<\/a> that was foreclosed due to a failed real estate loan now faces heightened scrutiny from city officials to ensure the property\u2019s problems are fully addressed and won\u2019t worsen.<\/p>\n

At one point, the property was the focus of a grand plan to develop a 374-unit, 24-story housing tower<\/a> at 27 South First St. that would have been an eye-catching addition to the San Jose skyline.<\/p>\n

\"2727 South First St., a commercial building in downtown San Jose, seen on April 2, 2026.\u00a0(George Avalos\/Bay Area News Group)<\/p>\n

RELATED:\u00a0San Jose warns of blight woes at foreclosed downtown housing tower site<\/a><\/p>\n

The tower never broke ground. The former owners of the property, Alterra Worldwide and real estate executives Tony Bader and Mike Sarimsakci, pursued conventional financing and more exotic funding vehicles to land the money to build the homes.<\/p>\n

The site fell into neglect and became a blighted public nuisance. Despite being on the city\u2019s radar over a four-year stretch that began in 2022, San Jose officials failed to banish the building\u2019s blight.<\/p>\n

\"EntryEntry area of 27 South First St., a commercial building in downtown San Jose, seen on April 2, 2026. Contact information for a property management firm and a metal barrier inside the door are visible.\u00a0(George Avalos\/Bay Area News Group)<\/p>\n

Eventually, the original lender for the property lost patience with the prior owners<\/a> and seized the building through a speedy foreclosure. San Mateo-based TDA Investment Group now owns the building following the foreclosure.<\/p>\n

Yet by owning the building, TDA Investment is now responsible<\/a> for keeping the property free of blight. A city panel that oversees San Jose\u2019s code enforcement efforts recently held a hearing regarding the eyesore problems at 27 South First.<\/p>\n

Code enforcement staff stated that some improvements have emerged at the building this year.<\/p>\n

\u201cThe building showed visible changes to the property,\u201d the minutes for the March 26 city meeting stated. \u201cThe new owners are working towards compliance.\u201d<\/p>\n

Two decorative signs that tout the multiple major sporting events scheduled for the San Jose area during 2026 now cover the formerly unsightly windows at the property.<\/p>\n

A metal barricade is now visible behind the property\u2019s main entrance on South First Street, a barrier that could thwart unwelcome entries into the building. A phone number for the property manager is posted at the entrance.<\/p>\n

Graffiti remains visible near the roofline of the commercial building, which in past decades was a bustling hub for retail and shoppers.<\/p>\n

The building was once occupied by an F.W. Woolworth Co. department store. More recently, Ross Dress for Less operated one of its discount apparel stores at the property. In 2016, Ross closed its doors.<\/p>\n

After Ross exited the building, the property became a pop-up enclave for local artists<\/a> operating through the Local Color organization.<\/p>\n

No long-term tenants have agreed to take space in the building, however.<\/p>\n

At the meeting in late March, San Jose\u2019s Appeals Hearing Board voted unanimously to place the property into the city\u2019s neglected vacant or abandoned building monitoring program. Increased fines and penalties could be on the horizon.<\/p>\n

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