San Jose housing tower faces auction and foreclosure over failed loan

SAN JOSE — A lender is heading into the final stages of its efforts to seize ownership of The Fay through a foreclosure of a delinquent construction loan totaling $182.5 million.

Documents filed with the Santa Clara County Recorder’s Office show the lender could take back the 363-unit high-rise at 10 East Reed St. in the SoFA district before the end of the year.

Real estate firm Scape, based in England, bought the site for $16.5 million in 2020…

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