SAN JOSE (KPIX 5) — A San Jose landmark is going back on the market after a deal to sell the historic Hayes mansion fell through.
The city is trying desperately to sell the property on Edenvale Avenue and is so motivated to off-load the old hotel it has even lowered the asking price.
Whenever the 214-room hotel is sold, it’ll be a relief to the city budget since San Jose pays $2 million to $6 million each year to keep it afloat.
The first red flag about the Hayes mansion deal came two days after the buyer signed the contract.
The previous buyer, Asha, promised to pay $1 million deposit into an escrow account, but the money never came through.
Loren Haley with the city of San Jose said, “It was disappointing. It’s not unusual for real estate transactions to fall through and now we’re just looking forward to the future and excited to see what the market will bring.”
Asha was set to pay $47 million, well above the asking price $42 million.
But on Monday, the city put the Hayes mansion back on the market for a minimum bid of $36 million.
At that price, the city says they can resolve all their debts related to the mansion and walk away.
Haley said, “Going back out at $36 million will allow us to retire all of the debt and anything above and beyond that would be extra money for the city.”
Haley said, “But it’s a beautiful, very unique property. It’s a gem of San Jose. And we’re really excited to see it go to a great buyer who will continue to operate it as a hotel, potentially invest in the property and see it returned to its glory.”