A once-busy Santa Clara shopping center home to Asian-owned businesses is now nearly empty — and multiple tenants are taking their former landlord to court as the property moves toward redevelopment.
Two businesses at the Homestead Shopping Center — Tous les Jours bakery and Fuheng Herbs — have filed separate lawsuits alleging they have been misled and pushed out by former shopping center owner David Bider, prior to him selling the property through Cypress Investments to developer PulteGroup.
The legal challenges come as most tenants have already closed their storefronts or are preparing to leave. The last businesses at the shopping center are Super Kyo-Po Plaza and JX Cuisine, which are expected to close around April 19 — although no firm date been given by the developer.
Georgia-based residential developer PulteGroup wants to transform the Homestead Shopping Center into a 147-townhome development, with about 20 affordable homes and 341 parking spaces. The three- and four-story project, located at 3521 and 3591 Homestead Road, also includes nearly 5,000 square feet of commercial space.
Jeanie Chong, owner of Tous les Jours bakery, has been a tenant in the shopping center for more than a decade. She has filed a lawsuit alleging the former landlord, Cypress Investments, improperly used a lease provision intended for redevelopment to terminate its lease early in order to sell the property, according to documents reviewed by San José Spotlight.
Tous les Jours served a second location in Fremont, which also shuttered when the bakery closed its doors in Santa Clara at the end of February.
“The closure of both locations has been financially devastating,” Chong told San José Spotlight. “We spent years building not just the business, but a community around them. We invested significant time and effort in training our team, and unfortunately we had to let them go on very short notice.”
Chong’s lawsuit argues the lease provision was used as a pretext, not for improvements to the property but to facilitate a sale to PulteGroup. Both Cypress Investments and PutleGroup are named in the lawsuit.
“At no point did Defendants disclose that it was contemplating a sale of the Shopping Center for residential redevelopment, nor that the Addendum would be used to deliver the property vacant,” the lawsuit reads. “On or about January 25, 2023, Plaintiff and SBH (Homestead Properties) executed an Addendum extending the lease term through May 2028. Plaintiff executed the Addendum under duress, as Defendants exerted undue economic pressure by implying that failure to sign would result in immediate nonrenewal of the existing lease, loss of tenancy, and disruption to Plaintiff’s established business operations, leaving Plaintiff with no reasonable alternative but to agree, despite the unfavorable terms and lack of full disclosure regarding Defendants’ redevelopment intentions.”
Bider and representatives for PulteGroup did not respond to requests for comment.
Dalong Zhang, owner of Fuheng Herbs, a Chinese medicine shop in the plaza, said he filed a separate lawsuit against the same property owner alleging unsafe conditions, lack of maintenance and misleading statements about redevelopment plans.
His complaint alleges the landlord failed to maintain the property, citing pest infestations, blocked access points and roof leaks while continuing to collect maintenance fees from tenants, according to court documents.
Zhang said he is searching for a new location, but has not found a suitable storefront yet.
“We’re the last herb shop,” Zhang told San José Spotlight. “Everything is about money.”
For longtime customers, family-owned Korean market Super Kyo-Po Plaza has served as more than just a place to shop. Some residents have been loyal customers since it was previously located on Camino Real, because it is a more affordable alternative to other Korean supermarkets.
“I’ve been coming here since I was in high school,” customer Mina Clark told San José Spotlight. “It’s going to be really sad once they’re gone.”
For nearby resident Joseph Chung and his friends, Super Kyo-Po Plaza has offered convenient and affordable access to food and goods. That accessibility is what they say will be hardest to replace once the market closes. He said there are other Korean markets in Santa Clara, but Super Kyo-Po Plaza is unique because of its farm-fresh produce and low prices.
“This is my refrigerator,” Chung told San José Spotlight. “Anytime I need food or vegetables, I just come here.”
The proposed housing redevelopment is part of a broader trend across Silicon Valley as cities look to address housing shortages. Santa Clara has to add 11,632 homes by 2031 to meet state housing mandates.
The City Council has little latitude when it comes to these projects because developers may not be required to provide environmental impact reports under the California Environmental Quality Act due to recent law changes. Other state laws also give developers breaks as the state focuses on creating more housing.
District 5 Councilmember Suds Jain, who represents the area, said while the displacement of longstanding businesses is difficult, the city has limited control over private lease agreements, referring to the tenants at the shopping center.
Jain said tenants with active leases may be entitled to compensation, and disputes over those terms could be part of the ongoing lawsuits, but he is not familiar with the legal issues.
“The city doesn’t have control over those,” Jain told San José Spotlight.
As the remaining businesses prepare to close, the lawsuits could shape what happens next — not just for the property, but for how redevelopment is handled for small businesses across the region.
“Small businesses are part of what makes the Bay Area what it is,” Chong said. “When they are wrongfully pushed out under pretext, it doesn’t just affect the business owners — it impacts the entire community.”
Contact Maryanne Casas-Perez at [email protected] or @CasasPerezRed on X.
