Construction of fraud-tied San Jose condominiums is nearly complete: court records
A San Jose condominium complex engulfed in a massive real estate fraud case is nearly complete.
SAN JOSE — A San Jose condominium complex engulfed in a massive real estate fraud case is nearly complete, an achievement that clears the way for sales of the project’s condo units, court records show.
The condo complex, located at 1821 Almaden Road in San Jose, is one of the Bay Area properties tied to a South Bay real estate executive who, federal investigators claim in the court case, defrauded hundreds of investors.
Sanjeev Acharya and his company Silicon Sage are the central figures in the real estate fraud case. In 2020, the Securities and Exchange Commission accused Acharya of fraud, claiming he bilked 250 unwitting investors, many of them of South Asian heritage, out of about $119 million that they invested in projects by Acharya and Silicon Sage Builders.
A federal judge overseeing the case shoved all of Acharya’s assets, including his sprawling Bay Area real estate empire, into court-ordered receivership. The receiver has been attempting to unwind the financial tangle
The 1821 Almaden complex, which consists of 91 condominiums that are being offered for sale as a way to help raise some cash that could help the defrauded investors recoup at least some of their investments, the court-appointed receiver stated in a legal filing the U.S. District Court in San Francisco.
“All units have been completed,” the receiver stated in a court filing on Feb. 23. “Site work has been completed, and all driveways, sidewalks and asphalt improvements are finished.”
Some amenities work was still being completed as of the time of the filing.
“Common areas are nearly complete, with the pool equipment now installed and with the terrace seating area finished with accompanying high-end BBQ grilles,” the receiver stated in the court papers. “Both gyms have been finished and fitness equipment has been installed. The common room has been finished.”
Some condo purchases have been completed, the receiver stated.
“The receiver continues to support the sales effort of the units,” according to the filing. “The receiver’s team has coordinated signage for marketing purposes and the development of a sales website. As of the date of this report filing, 38 units at Almaden are under contract.” Five units have been sold.
A similarly sized project in Fremont is much further along in the marketing process. Nearly all of the Fremont units, in a project called Osgood, have been bought.
“The condominium project owned by Osgood is complete, with 92 units having closed escrow and one still being marketed for sale,” the receiver stated in the court filing.
It isn’t clear how much — if any — of the proceeds from the sales of the pieces of the Acharya real state empire will reach the defrauded individual investors in Acharya’s properties. Lenders on the properties are receiving a big chunk of the proceeds from the property sales.