Downtown San Jose's New 360 Residences in Trouble

Posted by Danielle & David Contreras on Monday, March 1st, 2010 at 9:55pm.

While sales seem to be strong for The 88 and Axis developments in downtown San Jose, another residential project is facing hard times. The $200-million Three Sixty Residences on South Market Street is facing $2.1 million in liens from its contractors.

The 360 Residences is being built by Bovis Lend-Lease LLC. While they will not comment on the liens, Garner Gremillion, the former executive of the 360 project, says that the company is owed $5 million by the developer, Mesa Development of Chicago. Without that money, it is unable to pay its subcontractors.

But that is not the only problem facing the Three Sixty. Though it was completed in December, the 213-unit high-rise has yet to receive its certificate of occupancy. There is, however, a temporary certificate, and prospective buyers have placed down payments on 90 of the units.

The sale of the condos is especially important to cash-strapped City Council. Though they sold the land to Mesa for $10 million, they have agreed to defer payment on the final $2 million until the units have been sold. With the current problems, that could take a while.
Full Story at Business Journal

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