FREMONT — An reasonably priced houses builder has purchased two Fremont houses tangled in a authentic estate fraud scenario in a offer that may well return some cash to investors who securities regulators claim were swindled by a Bay Spot developer.
MidPen Housing Corp., acting by an affiliate, has bought parcels at 41965 and 42021 Osgood Street in Fremont, according to documents submitted on Nov. 30 with the Alameda County Recorder’s Business office.
MP Irvington, the MidPen affiliate, paid $13.5 million for the two web sites, the county information clearly show.
These Fremont parcels are among quite a few qualities that have been part of the Bay Spot authentic estate empire fashioned by unsuccessful developer Sanjeev Acharya and his fraud-joined firm Silicon Sage Builders.
The Securities and Trade Commission has accused each Acharya and Silicon Sage of an array of fraudulent steps that fleeced hundreds of traders, numerous from the South Asian group, according to the SEC allegations.
MidPen Housing’s acquire of the Fremont web pages was an all-dollars deal, according to the residence paperwork.
Jeff Aguilar, a broker with CBRE, a commercial actual estate firm, organized the purchase deal, U.S. District Courtroom information present.
A federal decide has shoved Silicon Sage’s homes into receivership. David Stapleton, the courtroom-appointed receiver, has begun a sophisticated method of making an attempt to salvage benefit from the collapsed and bankrupt serious estate empire by locating potential buyers for the properties.
Right before finding a potential purchaser for the Osgood Street website in Fremont, the receiver promoted the house for some months, in accordance to court papers.
The earlier proposal for the house envisioned the growth of 284 units on 3.5 acres at the Osgood Street web site.
MidPen Housing envisions somewhere all around 190 to 270 units at the Osgood site, in accordance to Fremont town planning documents.
The receiver also has engineered the sale of a few other qualities:
— A single38 Flats at 138 Balbach St. in downtown San Jose was bought for $53.5 million to Carmel Partners on Oct. 13.
— On Oct. 15, an place of work building at 510 S. Mathilda Ave. and an adjacent apartment complicated at 518 through 528 S. Mathilda Ave. were being bought for $6.45 million.
— On Sept. 29, the workplace and retail models in the Madison combined-use progress at 1364, 1374 and 1378 El Camino Real in Santa Clara were being acquired for $2.6 million. Residential condos in the complex weren’t concerned in that deal.
MidPen Housing, the future new owner of the Fremont houses on Osgood Street, is a veteran nonprofit residential developer.
“Our perform at MidPen is pushed by the belief that safe, affordable housing supplies the basis required for folks to prosper and contribute to their communities,” MidPen states on its site.
The organization has formulated 8,500 households for low-revenue families, seniors and distinctive-desires folks, in accordance to a post on the MidPen site.
“There’s nothing additional satisfying than offering stable housing that will allow folks to prosper, not just endure,” the MedPen Housing submit states.
In the just-concluded Fremont offer, the CBRE broker solicited bids from a number of future potential buyers and established a deadline in May perhaps of this 12 months for the submission of the bids.
Seven bids were being gained, all from residential builders. All the bidders stated they intended to request new approvals from Fremont officials to re-entitle the undertaking.
Just about all of the opportunity purchasers required to be specific that they could get Fremont’s approval of entitlements to produce the property before they done the obtain of the web site.
The court docket documents suggest that MidPen Housing was keen to quickly-observe its acquisition.
Men and women who invested in the Osgood web site could receive tens of millions from the $13.5 million house deal — right after payments are designed to different get-togethers.
The principal lender for the assets, Osgood Washington Holding Co., is expected to get $10.3 million from its share of the proceeds. Residence taxes full $420,300. The CBRE broker’s fee is $175,000. Closing expenditures total $67,500.
The payments to other get-togethers may leave a residual of a lot more than $2 million, which could offset at least a part of the losses suffered by the traders in this particular job.
“The supply from MidPen Housing was decided to be the greatest mainly because it was geared up to near swiftly, relatively than waiting for entitlements,” the authorized filings exhibit.
Team writer Joseph Geha contributed to this report