SAN JOSE — The owner of a San Jose apartment complex that has teetered on the brink of foreclosure has filed for bankruptcy in a move that is poised to delay an auction of the property.
The residential hub is The Neo on First, a 50-unit apartment building that is in default on its mortgage, which lender CTBC Bank Corp. provided to the owner in 2017, according to public documents.
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The residential property went into default on its loan in September 2025. The delinquent financing totals $21 million, Santa Clara County real estate records show.
The Neo apartment hub is a few blocks from a San Jose housing tower that is also in default on its financing.
In July 2025, The Fay apartment high-rise in downtown San Jose at the corner of South First Street and East Reed Street went into default on its $182.5 million construction loan, county real estate records show.
The Fay is a 23-story residential tower with 336 units that opened with much fanfare in December 2024 as a housing complex that could help fuel a downtown San Jose revival if its residents dine, shop, drink and seek entertainment in the area.
The Neo on First apartment property was scheduled for an auction this month, with CTBC Bank stating it was poised to seize ownership of the complex if no bidders emerged as buyers.
On Jan. 6, however, the day before the foreclosure was scheduled to occur, the business entity that owns The Neo on First filed to reorganize its finances, documents posted with a U.S. Bankruptcy Court show. The lender postponed the auction.
The owner of the apartment complex stated that both its assets and liabilities have a value in the range of $10 million to $49 million, the bankruptcy filing shows.
The apartment building has a value of $38.1 million, the property’s owner stated in the bankruptcy filing.
The property owner also owes Santa Clara County roughly $140,700 in unpaid property taxes, according to the filing.
Helen Liu and Jonathan Guan, who are listed as being based in Los Altos, have provided the property with a second mortgage that totals $910,000. That secondary loan was provided in 2022, court records show.
The apartment complex’s principal owner is a Cupertino-based business entity. The chief executive officer of the entity is listed as Xuhan Yu.
In 2025, the apartment complex generated $3.1 million in revenue, court records show. That was a decline of 11.4% from the $3.5 million in revenue that Neo on First produced in 2024, according to the bankruptcy filing.
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