Site where popular Bay Area pet store once operated goes back to the bank in foreclosure
SAN JOSE — The downtown San Jose site of a proposed — but never built — housing development where a popular pet store once operated has been foreclosed due to a delinquent loan for the project.
The project site that went back to its lender was once the location of Andy’s Pet Shop, which was ousted from that location so the store structure could be bulldozed to clear the way for the development.
West Coast Community Bank, which through a merger became the successor to the original lender for the site, Santa Cruz County Bank, is now the property’s owner, documents filed on Jan. 16 with the Santa Clara County Recorder’s Office show.
Acquity Realty had owned the property through an affiliate, but lost control of it through this month’s foreclosure as a result of becoming delinquent on a $10 million loan it had obtained in 2021.
The empty development site is at 51 and 65 Notre Dame Ave., next to Carlysle Street. The real estate firm’s visions for the property, known as the Carlyle, started out with a proposal for a mixed-use retail, dining, housing and office tower, a 21-story unique blend of components that was approved by city officials but never broke ground.
The latest vision for the site emerged when Aquity Realty put the four-parcel property up for sale in May 2025. Acquity at the time proposed a 148-unit mid-rise development with 4,700 square feet of ground-floor retail spaces.
“The Carlysle was a speculative project that was overly optimistic,” said Bob Staedler, principal executive with Silicon Valley Synergy, a land-use consultancy.
The property’s longtime occupant was Andy’s Pet Shop. In 2021, Acquity bulldozed the store to clear the way for the never-built tower. Andy’s Pet Shop now operates on Bascom Avenue in San Jose.
The bank paid $2.3 million for the property in the foreclosure, according to the trustee’s deed, and is likely to find a new owner for the site rather than attempt to develop the property on its own.
“The bank will have a long road ahead to monetize this site,” Staedler said.
A new owner might wind up with an attractive location at a fire-sale price.
“An affordable housing project is potentially the highest and best use at the moment” for the property, Staedler said.