SAN JOSE – A residential complex in downtown San Jose is set to be the first property to be unloaded in an auction to sell portions of the real estate empire of a bankrupt developer involved in a federal fraud case.
The first property to find a potential buyer – at $ 54.2 million – was a large apartment building at 138 Balbach St. in the center of San Jose. Acharya.
Court-appointed trustee David Stapleton is trying to sell real estate owned by Acharya, president of Silicon Sage Builders and head of real estate, which is at the center of a Securities and Exchange Commission fraud trial.
“The recipient accepted the offer from Carmel Partners Realty VII to buy real estate,” documents filed in federal court testify.
The proposed buyer is a subsidiary of San Francisco-based Carmel Partners, which specializes in multi-family home ownership.
The apartment building on Balbach Street is conveniently located near the trendy and trendy South First District of San Jose or the Sofa District and the city’s convention center.
The residential complex, completed in 2019, also looks to be in good condition.
According to court documents, “almost all” of the 101 residential buildings are currently rented out.
The recipient hopes to sell the many Silicon Sage properties at high enough prices so that investors and lenders associated with Acharya’s projects can return at least some of the money that Acharya owes them.
“The property has been actively sold and sold in the past,” the recipient said, referring to attempts to find a buyer at 138 Balbach St.
Commercial real estate firm JLL was marketing the residential complex and arranged the transaction on behalf of the recipient. JLL conducted at least 47 inspections of the apartment building and conducted several rounds of bidding, court documents show.
It is expected that the recipient will put up for sale many other properties owned by the Acharyas, some fully, partially built and some not fully built up.
The Bay Area real estate involved in the marketing was originally offered or developed by Acharya and his company, Silicon Sage Builders. The Securities and Exchange Commission accused Acharya and Silicon Sage of fraud. This year, Silicon Sage got involved in a court order.
Silicon Sage projects and properties in San Jose, Fremont, Santa Clara, Sunnyvale, Morgan Hill and Hayward have different futures, according to documents filed in the US District Court in San Francisco.
The sale of apartments on Balbach Street in downtown San Jose, if completed in accordance with the terms set out in the court documents, could achieve the main objectives of the sale of real estate.
The sale of the property will be used to pay the lender for the apartment complex, as well as to pay the bond to the mechanic that eight different contractors have filed against the building. The lender will be paid about $ 39.9 million. The total amount owed to contractors is $ 400,000.
After paying JLL’s commission and paying the closing costs, several million will remain to pay out to Silicon Sage and Acharya’s creditors and investors.
“The trustee expects that the proceeds from the sale will be about $ 12.6 million,” – said in the court documents.