The controversial Silvery Towers, located at 188 West St. James Street in San Jose, has been facing significant challenges. Since October 2022, the developer, FPP MB, has not made any loan payments. This lapse prompted their creditor, CMTG California 2, to report a default to the Santa Clara County Clerk’s Office on October 10, 2024, potentially leading to foreclosure.

Responsible for the construction of Silvery Towers, FPP MB has accrued over $205 million in principal and interest since halting payments. The two towers at this location have been plagued by construction delays and legal disputes, along with mounting debts. What was intended to inject vitality into downtown has instead become a significant blemish on the area.

FPP MB’s parent company, Z&L Properties, is backed by Zhang Li, founder of R&F Properties. Z&L Properties acknowledged bribing San Francisco city officials last year, yet Zhang has avoided any prison sentences. Reports from the Hong Kong Economic Times indicate that he has since returned to China.

Each of the 22-story towers at Silvery Towers comprises 300 units. Although FPP MB once rented out some of these units, this decision led to further legal complications, including a tragic incident involving a suicide. The San Jose Mercury News cites expert opinions suggesting that every project undertaken by Z&L Properties in the city has faced dire consequences, prompting the publication to compile relevant property information.

– Silvery Towers at 188 West St. James Street is the only completed project by Z&L Properties in San Jose. Prior to halting sales in July 2023, FPP MB sold 100 units in the west tower and later attempted to lease the remaining 200 units.

– At 43 East St. James Street,Z&L Properties had initially promised to protect a nearby historic church during development, but the project ultimately resulted in the church’s collapse, and no building was ever constructed.

– Z&L Properties planned to build a 708-unit development at 60 and 70 South Almaden Avenue, but the project never broke ground, and the land was eventually sold to a developer from New York.

– Similarly, land between West St. James Street and Terraine Street was ultimately sold to other builders.

– The 3,654-acre Richmond Ranch site was purchased for $25 million in 2017 and later sold to Santa Clara County for $16 million, with the county expressing excitement over the acquisition of such a large conservation area.

Bob Staedler, general manager of the land use consulting firm Silicon Valley Synergy, expressed in an interview that Z&L Properties has not successfully completed any development projects in San Jose, including what may have seemed like a promising venture with Silvery Towers, which now faces the possibility of foreclosure.