The four-building office campus that once housed a major eBay operation on North First Street in San Jose is sliding toward foreclosure, with unpaid debt on the property now totaling $98.4 million. County recorder filings show Deutsche Bank A.G. filed an initial notice of loan default in July against owners Ocean West Capital Partners and Hana Asset Management, and prospective buyers are already circling the distressed site.
According to The Real Deal, the campus at 2515, 2525, 2535 and 2545 North First Street is in default on an $88.1 million loan, with the unpaid balance climbing sharply from $59.8 million as of this summer. Deutsche Bank plans to move forward with a total foreclosure, according to sources who spoke with the outlet, and the bank would look to sell the property to a new owner once the foreclosure process is complete. Ocean West Capital Partners and Hana Asset Management bought the 250,100-square-foot campus for $132.5 million in 2018, but the property's value has since cratered to $54.7 million, according to Morningstar data cited by the Bay Area News Group.
Real estate sources told the Bay Area News Group that Deutsche Bank chose to push toward full foreclosure rather than restructure the loan because the owners failed to cooperate on modification efforts. One building on the campus had already entered special servicing in 2023 as refinancing challenges mounted on the dark office space, according to The Real Deal, which also reported that the original $88 million loan was originated by Deutsche Bank when Ocean West Capital Partners and Hana Asset Management closed on the purchase.
How eBay's Exit Emptied the Campus
eBay once maintained a major office presence at the North First Street campus before consolidating its operations at its Willow Glen headquarters at 2025 Hamilton Avenue in San Jose in 2020. The company kept paying rent after it physically vacated the site, but a lease provision eventually let it walk away entirely. Morningstar reported, per The Real Deal, that although eBay's original lease ran through 2029, the company was able to stop making rent payments in March 2026 by giving 12 months' notice and paying a $12 million termination fee.
The campus's valuation has fallen while its unpaid loan balance has risen. The pattern is not unique to North First Street. KU Education, through an affiliate, was served notice of default in October on an $80 million Jefferies Loancore loan tied to the three-building Champion Station campus at 190, 210 and 230 West Tasman Drive, which spans 287,370 square feet, as reported by The Real Deal.
Electric Air-Taxi Maker Caught in the Crossfire
Electric air-taxi company Archer Aviation maintains its corporate headquarters at 190 West Tasman Drive and leases two of the three buildings at the now-defaulted Champion Station campus, per The Real Deal, which noted the company has also been expanding its regional footprint with a 501,000-square-foot lease at Cochrane Technology Center in Morgan Hill signed over the summer.
The Real Deal reported that Silicon Valley's office vacancy rate was 15.9% in the third quarter of 2026, down slightly from 16.2% the prior quarter.
Buyers Eyeing a Different Future for the Site
Among the names already circling the former eBay campus are Goodman Group and Harvest Properties, according to the Bay Area News Group's sources. Goodman Group's interest fits a broader pattern: the firm bought a nearby site for $200 million last year and plans to build a data center there.
That contrast — between vacant office towers losing value and power-hungry industrial sites commanding premium prices — has played out elsewhere in North San Jose this month too. Preylock Holdings paid $264.9 million for the fully leased Assembly at North First campus, a price that came in above the property's assessed county value, as Hoodline reported. It's a sign that while conventional office space continues to struggle across the submarket, developers chasing AI, robotics and data-center capacity are still willing to pay top dollar for the right kind of real estate in the same stretch of the city.
