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…