Commercial Real Estate Blog

We previously wrote a short piece on Vietnam Town’s troubles back in November about the work stoppage at the site and the lender halting payments.

It seems financial problems continue to affect the development now that some of the sub-contractors have filed to seek foreclosure of the site to satisfy monies they are owed for work.

There is no indication as to what exactly the issue is with the development, but a number of parties have not been paid and to date only one of those has filed to seek foreclosure. TWN Investments also represents some of the investors in the Vallco Mall project which has seen its own share of problems. Vallco has recently gone through a restructuring seeing some of the assets being sold to Orbit Resources and Fred Chan.

Construction on Vietnam Town has been halted during the past 2 months or so. The slow pace of work has apparently caused the lender, United Commercial Bank, to halt disbursements until the issues which have caused the delays and slow pace of work to be resolved.

Vietnam Town in San Jose is a multi-tenant, 275,000 SF, retail condominium project. Units are sold in roughly 1,000 SF size ranges and asking prices are in the $500 psf range. The center is one of the first for-sale commercial condominiums targeting retail. In the past several years office and industrial condominium development gained in popularity and several projects sold out.

Vietnam Town, which is located on 20 Acres on Story Road is being developed by TWN Investments and is being constructed by Reeve-Knight Construction. According to the developers, more than half of the center has already been sold.