SAN JOSE — A downtown San Jose office building whose principal owners include a firm headed by the WeWork co-founder has fallen behind on its mortgage payments, sources say.
The building is at 152 North Third Street, totaling 130,700 square feet, according to a real estate brochure. The property’s owner is a group controlled by Nazare Capital Management, whose principal executive and founder is Adam Neumann, the co-founder of WeWork, a firm that pioneered the concept of shared office spaces.
At the end of June, downtown San Jose’s office vacancy rate was 29.9%, which was an all-time high, according to Cushman & Wakefield, a commercial real estate firm. “The loan was recently transferred to the special servicer due to the borrower’s failure to make its monthly debt service payments,” according to information regarding the loan that was collected by Morningstar and sent to this news organization by David Putro, a Morningstar senior vice president and head of the firm’s commercial real estate analytics group.