Fraud-tied Fremont web pages may possibly be purchased by very affordable housing developer
FREMONT — Two Fremont web sites mired in a Bay Place authentic estate fraud case are established to be purchased by an affordable households builder in a deal that might return some dollars to buyers who federal regulators claim ended up bilked by the task developer.
The attributes are positioned at 42021 and 41965 Osgood Street near the interchange of Interstate 680 and Washington Boulevard in Fremont, in accordance to paperwork filed on Nov. 9 with the U.S. District Court.
These Fremont parcels are amongst many attributes that ended up portion of the Bay Area actual estate empire fashioned by unsuccessful developer Sanjeev Acharya and his fraud-joined organization Silicon Sage Builders.
The Securities and Exchange Commission has accused both of those Acharya and Silicon Sage of an array of fraudulent actions that swindled hundreds of buyers, numerous from the South Asian neighborhood.
A federal judge has shoved Silicon Sage’s properties into receivership. David Stapleton, the court-appointed receiver, has begun a prolonged process of trying to salvage price from the collapsed and bankrupt real estate empire by getting customers for the attributes.
Right before choosing a possible customer for the Osgood Highway web page in Fremont, the receiver promoted the home for some months, in accordance to court docket papers.
“The receiver has approved an present from MidPen Housing Corp. to buy the house for $13.5 million,” files submitted with the federal court docket in San Francisco display.
Jeff Aguilar, a broker with CBRE, a professional authentic estate organization, arranged the acquire offer.
“The purchaser has finished due diligence and escrow is holding a deposit of $1 million,” the courtroom papers mentioned. The sale is to be an “as is, where is” transaction, in accordance to the authorized filing.
The preceding proposal for the property envisioned the advancement of 284 units on 3.5 acres at the Osgood Highway website.
But it now seems that a new improvement proposal will be submitted to the town of Fremont.
The CBRE broker solicited bids from numerous future purchasers and established a deadline in Might of this year for the submission of the bids.
“Seven bids ended up been given, all of them from household developers intending to re-entitle the property,” in accordance to the courtroom files.
Almost all of the opportunity purchasers preferred to be certain that they could win Fremont’s approval of entitlements to create the assets ahead of they finished the acquire of the internet site. The courtroom documents indicate that MidPen Housing was prepared to fast-track its acquisition.
“The present from MidPen Housing was established to be the ideal due to the fact it was well prepared to close rapidly, alternatively than waiting for entitlements,” the legal filings exhibit.
People who invested in the Osgood site could receive thousands and thousands from the $13.5 million sale of the assets immediately after payments are produced to diverse functions.
The principal financial institution for the property, Osgood Washington Holding Co., is envisioned to obtain $10.3 million from its share of the proceeds. Assets taxes whole $420,300. The CBRE broker’s fee is $175,000. Closing fees total $67,500.
That should leave a bit extra than $2.3 million left around, which could offset at least a part of the losses endured by the investors in this precise venture.
The receiver also has engineered the sale of three other qualities:
— One38 Apartments at 138 Balbach St. in downtown San Jose was marketed for $53.5 million to Carmel Partners on Oct. 13.
— On Oct. 15, an workplace constructing at 510 S. Mathilda Ave. and an adjacent apartment complicated at 518 via 528 S. Mathilda Ave. ended up acquired for $6.45 million.
— On Sept. 29, the place of work and retail models in the Madison blended-use improvement at 1364, 1374 and 1378 El Camino Genuine in Santa Clara ended up purchased for $2.6 million. Residential condos in the sophisticated weren’t included in that offer.
MidPen Housing, the possible new owner of the Fremont qualities on Osgood Street, is a veteran nonprofit household developer. The business has developed 8,500 homes for small-profits people, seniors and unique-desires folks, according to a article on the MidPen web site.
“Our work at MidPen is pushed by the belief that harmless, very affordable housing delivers the foundation important for persons to prosper and add to their communities,” MidPen states on the website. “There’s practically nothing additional fulfilling than furnishing steady housing that lets individuals to prosper, not just endure.”