Debt of $98.4 million has gone unpaid on a four-building office campus along North First Street in San Jose — a property that previously served as home to a notable eBay presence — pushing the site toward foreclosure proceedings. Filings at the county recorder's office reveal that Deutsche Bank A.G. served a notice of loan default on Ocean West Capital Partners and Hana Asset Management in July, with prospective buyers already conducting due diligence on the asset.
Four addresses along North First Street — 2515, 2525, 2535, and 2545 — form a campus now carrying a defaulted loan of $88.1 million, with the outstanding balance having grown to that figure from $59.8 million recorded earlier this summer. Unnamed sources indicate that Deutsche Bank intends to pursue a full foreclosure on the property, with the lender expecting to put the asset on the market for a new buyer once that process concludes.
Morningstar data shows the 250,100-square-foot campus that Ocean West Capital Partners and Hana Asset Management jointly acquired for $132.5 million in 2018 has shed roughly 59 percent of that purchase price, with its assessed worth now standing at $54.7 million. According to industry sources with knowledge of the matter, Deutsche Bank moved toward outright foreclosure on the property after loan modification discussions with the owners broke down without agreement.
By 2023, at least one property within the campus portfolio had been handed over to a special servicer, a consequence of the difficulties its owners faced in securing new financing for office space that had sat empty. Deutsche Bank arranged the original $88 million loan at the time Ocean West Capital Partners and Hana Asset Management finalized their acquisition of the property, while eBay had previously held a notable footprint at the North First Street campus before shifting its operations to 2025 Hamilton Avenue in San Jose's Willow Glen district in 2020.
Rent obligations continued even after the premises were vacated, until a clause within the lease agreement provided a pathway for the firm to terminate its occupancy commitments altogether. Despite holding a lease set to run until 2029, eBay exited its rent obligations as of March 2026 by serving 12 months' advance notice and absorbing a $12 million termination fee.
A default notice on an $80 million Jefferies Loancore loan reached KU Education — through one of its affiliated entities — in October, with the debt tied to Champion Station, a three-building office complex at 190, 210, and 230 West Tasman Drive totalling 287,370 square feet. Archer Aviation — the electric air-taxi firm — runs its corporate offices out of 190 West Tasman Drive and holds leases on two of the three buildings within the Champion Station campus, a development now in default.
A 501,000-square-foot lease at Cochrane Technology Center in Morgan Hill — executed during the summer months — has added another foothold to the firm's growing presence across the region.
Across Silicon Valley's commercial property market, empty office space accounted for 15.9% of total inventory during the third quarter of 2026, a modest retreat from the 16.2% recorded in the preceding quarter.
Two developers — Goodman Group and Harvest Properties — have been identified as prospective buyers for the former eBay campus. Goodman Group's acquisition of an adjacent parcel for $200 million in the previous year — with a data centre development planned for that land — adds context to the company's current interest in the area.
The Assembly at North First campus, fully occupied by tenants at the time of sale, changed hands for $264.9 million — a figure that topped the county's assessed valuation of the property — with Preylock Holdings recorded as the buyer. Demand for properties suited to artificial intelligence, robotics, and data-centre buildout has kept acquisition costs elevated across that part of the city, even as landlords handling traditional office stock contend with persistently low occupancy.
