A vacant, fenced-off lot at 335 South Winchester Boulevard in West San Jose could soon change hands after its owner defaulted on a $6.7 million loan, county records show, setting up a possible foreclosure auction in the coming weeks that would transfer the blighted property to the lender or an outside buyer.
Pacific Row Development, through an affiliate, has owned the site since buying it for $1.5 million in 2018, according to East Bay Times. The company took out a $6.7 million loan from Golden Bank in 2021, the same year the restaurant that once occupied the property, Khanh's, closed its doors there and relocated to Campbell. An affiliate of Pacific Row Development later defaulted on that loan, according to a notice filed by Golden Bank and reported by The Real Deal.
Since Khanh's left, the property has sat empty and steadily deteriorated. Plans for both new apartments and office space have come and gone over the years, but nothing has ever been built on the site, the outlet's report notes.
Office Plans Gave Way To Housing, Then Stalled Too
The site's development history has been a study in reversals. An initial proposal called for an office building, but the developer abandoned that plan and shifted toward housing, according to a filing described by SFYIMBY. In 2024, a Pacific Row Development affiliate pivoted to a 75-unit apartment complex with ground-floor retail, per the same reporting from the same outlet. A separate account of the project from SFYIMBY described a 95-unit rental building with 10% of units set aside as affordable housing — a discrepancy in the record that has not been resolved.
Whichever version was accurate, the vacant commercial building formerly occupied by Khanh's would need to be demolished before any housing could rise there, the SFYIMBY report states. Neither the office concept nor the apartment proposal ever broke ground, per Mercury News reporting on the site's status as of May.
The property was also put up for sale during this period, first listed at $25 million before the asking price was cut to $20 million, according to The Real Deal's account. No sale appears to have gone through before the loan fell into default.
Inspectors Flag Ongoing Blight
City officials have taken notice of the site's condition. A San Jose code enforcement officer presented an inspection report on the property at a city appeals hearing board meeting in March, and inspector Manuel Duarte said blight still affected the property as of March 12, per the fresnobee.com account of that hearing. The inspection cited overgrown vegetation, graffiti, and the presence of solid waste on the property.
The property had an active demolition permit issued in December 2025, but demolition of the building had not started by the time of the March hearing, according to reporting from Mercury News. When Mercury News visited the site on May 5, it remained fenced off, with debris piled next to the empty, boarded-up building.
Part Of A Broader Pattern Of Defaults
The Winchester Boulevard default is not an isolated case among South Bay commercial properties. The Real Deal's reporting notes that the 52-room Fontaine Inn in east San Jose fell into default on a $6.5 million loan from State Bank of Texas around the same period, while a nearby 204-room Motel 6 and Super 8 by Wyndham complex was in default on a $21.7 million property loan. The La Quinta Inn & Suites in San Jose defaulted on a $16 million loan the previous month, the same outlet reported.
For now, the fate of the West San Jose lot hangs on whatever happens at auction. County records reviewed by East Bay Times indicate the sale could happen within the next several weeks, though it remains unclear whether Golden Bank or a new buyer will end up controlling the long-vacant parcel once the dust settles.
