A high-rise building in downtown San Jose, located at 188 West St. James Street, is going through some big changes. The building is part of a two-tower housing complex developed by a company called FPP MB, which is connected to a Chinese real estate firm named Z&L Properties. Originally, the owner began selling condos in one of the towers—the west tower—starting in early 2022. Things went well at first, and about 100 condos were sold by the middle of 2023. But then, condo sales suddenly stopped in July 2023. Since then, no new sales have been recorded in public county records.
Now, the owners have changed their plan. Instead of trying to sell the remaining units, they are now working to rent them out. There are still around 200 unsold condos in the west tower. A rental company called Tripalink, which helps people find modern apartments, has been hired to take over leasing efforts.
Free Rent and High Prices to Attract Renters
To get people interested in renting the units, Tripalink is offering special deals, like two months of free rent. These offers are advertised as limited-time promotions and are scheduled to end on November 30. A similar deal had already been offered earlier, but that one expired around mid-October. This shows the owner is eager to fill the empty units quickly.
The apartments are being marketed as luxury rentals, and the rent is not cheap. According to listings on Apartments.com, prices range from $8,333 to $10,000 per month. Tripalink’s own site mentions that some units go for as much as $12,000 per month. One example listed is a three-bedroom, two-and-a-half-bath unit renting for $10,000, which would come out to $3,333 per person if shared by three people. These high rents suggest the units are targeted toward renters with higher incomes or people looking for shared luxury living.
Lawsuits and Complaints Create Legal Trouble
While all of this is happening, the building’s owner, FPP MB, is facing multiple lawsuits and complaints. The legal issues mainly relate to two big problems. The first involves several condos in the west tower that were auctioned off because their owners fell behind on homeowners association (HOA) dues. The tower’s owner has gone to court to try to reverse those auctions.
The second problem is more serious: some residents claim that the living conditions in the building are unsafe or unacceptable. Legal filings mention a range of problems like no hot water, no heating or air conditioning, theft, and poor building security. The HOA also says that the building had only one working elevator for a long time, and that the boiler and HVAC systems were poorly installed and not maintained. There were also frequent floods in the parking garages.
In response, the owner admitted in an August court filing that these issues exist and said they are being fixed. However, the legal process is far from over. There are still nine court hearings scheduled through spring 2025. A judgment on the main legal complaints could come as soon as December, and decisions on penalties could follow in January.
Why Renting Might Be the Best Option
According to real estate expert Bob Staedler from Silicon Valley Synergy, switching from sales to rentals is a smart move right now. He explained that renting out the units will bring in cash for the owner and might make the property more attractive to a future buyer. In fact, both towers have been listed for sale, but neither one has sold yet.
Staedler recently toured some of the units for rent and said that interest appears to be picking up. He was told that rentals are happening quickly, which could help stabilize the situation for the building owner. Even with the lawsuits still ongoing, filling the tower with paying tenants could be a big step in the right direction.
A Boost for Downtown San Jose
Filling up the west tower will not just benefit the owner—it could also help the whole downtown area. The towers are located in San Pedro Square, one of San Jose’s most vibrant neighborhoods. More residents mean more foot traffic during the day and night, which helps local businesses like restaurants, shops, and entertainment venues.
Staedler also mentioned that getting people to move into the west tower might push the developer to finish the east tower, which is still not complete. Despite all the legal and maintenance problems, the move to turn the unsold condos into rentals might be the best way forward, both for the building and the community around it.
