BioSquare Silicon Valley Campus Sells for $50 Million

The San Jose office property sold for 65% less than its 2018 acquisition price following a formal foreclosure proceeding.

Updated on Oct. 30, 2026 in Commercial

Isometric editorial illustration of a generic modern office complex, representing shifts in commercial property valuation. — South Bay Development Co. acquired the BioSquare Silicon Valley campus in San Jose for $50 million, a 65% drop from previous acquisition pricing. AI Illustration. Upload story photo >

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South Bay Development Co. has acquired the BioSquare Silicon Valley campus in San Jose through a foreclosure proceeding. The Los Gatos-based firm purchased the property for $50 million, a 65% decrease from its previous acquisition price.

Why it matters

The sale highlights significant shifts in local commercial real estate valuations as high-debt office properties transition to new owners. This move marks the conclusion of a financing cycle that began with a $207 million loan in 2022.

The property was sold for $50 million following an outstanding debt of $167.9 million. This figure sits well below the $144.5 million price tag from 2018.

The players

South Bay Development Co.

A Los Gatos-based real estate firm that specializes in the development and acquisition of commercial properties.

United Overseas Bank

A multinational banking institution that acted as the final holder of the property loan before the transfer.

Pimco

A global investment management firm that provided the original $207 million financing for the campus in 2022.

The details

South Bay Development Co. secured ownership after United Overseas Bank transferred the $207 million loan associated with the property to the developer in January 2026. This transfer enabled the firm to initiate the foreclosure process against the previous ownership group. The campus represents a substantial correction in valuation compared to the peak financing levels obtained by the prior owners in 2022.

2018: A PCCP-led group acquired the property for $144.5 million.
2022: A real estate venture obtained $207 million in financing for the site.
2024: The PCCP-led group completed a revamping of the office park.
December 2025: Pimco assigned the loan to United Overseas Bank.
January 2026: United Overseas Bank transferred the loan to South Bay Development Co.

The Home Front

Large-scale commercial shifts like this often signal broader cooling trends in the regional office market. These revaluations can impact local property tax assessments and the long-term economic outlook for surrounding business districts.

Property owners near major office campuses should monitor local zoning and redevelopment filings to see how a change in ownership affects neighborhood traffic and future utility demand. For those tracking broader economic impacts, keep an eye on upcoming Santa Clara County assessment reports.

The takeaway

Commercial property foreclosures signal a reset in asset values that can ripple through local tax bases and development plans. Homeowners in the area should monitor upcoming planning commission hearings for any potential changes in land-use permits for the campus.