Investor takes over fraudulent Sunnyvale offices and residences

SUNNYVALE – An office building and residences in Sunnyvale linked to a real estate fraud case in the Bay Area have been bought, but it is not clear if the deal can make money for investors who have been swindled.

The deals are the most recent known deals involving the collapsed Bay Area real estate empire of the failed developer on fraud charges Silicon Sage Builders and the company’s chief executive, Sanjeev Acharya.

A Saratoga-based investment firm purchased an office building at 510 S. Mathilda Ave. and an apartment complex adjacent to 518-528 S. Mathilda Ave., according to documents filed Oct. 15 with the Santa Clara County Recorder’s Office.

The two properties are among the real estate holdings of Silicon Sage and Acharya which have begun to dissolve following charges filed by the Securities and Exchange Commission which allege that Acharya has committed fraud against hundreds of investors, including a lot of Southeast Asia, which have sunk money. in Silicon Sage projects.

A federal court has allowed a receiver, David Stapleton, to take control of the properties and attempt to sell them for the purpose of raising funds that could be returned to investors who, according to the SEC, were defrauded by Acharya and Silicon Sage .

In the most recent known transaction, Sam Cloud Barn, a subsidiary controlled by Bay Area real estate investor Shawn Taheri, paid $ 6.45 million for the office building and an adjacent apartment building , according to county records.

Saratoga-based Taheri’s group, which is also affiliated with HL Investment Management, secured a $ 2.67 million loan from Citizens Equity First Credit Union upon purchase of the property, according to public documents.

Other properties of Silicon Sage were purchased in recent transactions related to the fraud case:

– On September 29, the Madison mixed-use development office and retail units at 1364, 1374 and 1378 El Camino Real in Santa Clara were purchased for $ 2.6 million. The residential condos in the complex were not involved in this transaction.

–On October 13, One38 Apartments, a 101-unit complex at 138 Balbach St. in downtown San Jose, was purchased for $ 53.5 million by an investment firm.

Many other Silicon Sage properties are actively marketed for sale, but it is unclear when buyers might emerge for the other sites.

The court-appointed receiver has embarked on a lengthy process to try to recover the value of the collapsed and bankrupt real estate empire by finding buyers for the properties.

Some sales attempts must overcome significant hurdles before properties can be sold. In at least one case, a lender threatens to foreclose the property and seize his property.

Source link

About Gloria Turner

Gloria Turner

Check Also

Global housing fever: a warning for Vietnam

The Vietnamese real estate market has grown strongly in recent years and will remain an …