SAN JOSE — The 188 W. St. James St. residential towers in downtown San Jose were bought through a fast-track foreclosure proceeding, according to documents filed Tuesday at the Santa Clara County recorder’s office.

Machine Investment Group, acting through an affiliate, paid $181.9 million for the housing high-rises, an amount that matches the unpaid debt for the property, county real estate records show.

New York City-based Machine Investment Group’s purchase creates some hope of a turnaround for the troubled housing development, which is in the vicinity of lively San Pedro Square.

Machine Investment aims to quickly orchestrate a rebound for the double-tower complex, which consists of more than 600 residential units. Each tower has about 300 condominiums, of which some are rentals and some are owned.

China-based Z&L Properties, acting through an affiliate, had been the owner and developer of the two towers. The affiliate lost its ownership when a $330 million loan that an affiliate of Mack Real Estate Credit Strategies provided in 2019 to finance the property was transferred to Machine Investment Group’s affiliate Tuesday.

Machine Investment also obtained a $215 million loan from an affiliate of New York City-based Benefit Street Partners to help finance the purchase.

The $181.9 million that Machine Investment’s affiliate paid was 44.9% below the $330 million loan that went into default and eventually led to the streamlined deed in lieu of foreclosure process.

The transaction ends a long-running ordeal for the West St. James towers that has stretched over about eight years.

During the Z&L affiliate’s ownership, a loan delinquency, foreclosure threats, lawsuits, project delays, construction blunders and defects, evidence that some workers were forced to live in an East Bay warehouse, allegations of slave labor, intrusions by homeless people into the property’s hallways and a death have haunted the property.

The new owner has wide-ranging plans for improvements, according to Eric Rosenthal, managing partner for Machine Investment Group.

“Our firm is uniquely positioned to apply its construction, finance and development expertise to stabilize building operations, relaunch sales, and provide an important housing solution to one of the most dynamic residential markets in the country,” Rosenthal said.

Machine Investment Group intends to recapitalize the project, prepare units for sale and reengage with the community to restore confidence in the towers. The real estate company intends to sell the remaining condos.

“A fresh start for 188 W. St. James” is the primary goal for the towers, Rosenthal said.