Default rattles bankrupt developer’s San Jose site

SAN JOSE — A personal loan default has rattled a San Jose venture proposed by bankrupt developer Sanjeev Acharya and his enterprise Silicon Sage Builders, generating additional fiscal issues for Acharya, who is the aim of securities fraud allegations.

A financial institution has submitted a see that a delinquent loan could cause a foreclosures of Silicon Sage Builder qualities at 2149 Alum Rock Ave. in east San Jose, in accordance to files submitted with Santa Clara County officers.

Acharya and Silicon Sage Builders have fashioned a Bay Place true estate empire that seems to have crumbled beneath the strain of many problems. The problems incorporate broad-ranging fraud allegations lodged by the Securities and Trade, Acharya’s Chapter 11 personal bankruptcy submitting, and an array of personal loan defaults for a growing variety of the company’s homes.

In just one of the most current difficulties, a loan provider claims that an affiliate controlled by Acharya and Silicon Sage Builders has defaulted on a loan totaling $5.98 million, general public documents filed on Feb. 24 show.

The house experiencing foreclosures proceedings is portion of a site wherever Silicon Sage Builders experienced proposed the growth of 796 households and 30,000 square ft of retail and cafe place in a big mixed-use advancement at and near 2101 Alum Rock Ave. in San Jose.

As component of the SEC fraud circumstance, filed in U.S. District Courtroom in San Francisco, federal choose Susan Ilston has approved a receiver to seize manage of the qualities and functions of Acharya and his Silicon Sage Builders company.

An estimated 250 people today who paid out about $119 million to devote in initiatives released by Acharya and Silicon Sage Builders confront the prospect that they were being defrauded by means of a economical world-wide-web woven by the authentic estate developer, in accordance to the SEC’s complaint.

In January, Acharya submitted for bankruptcy in an try to reorganize his finances.

Amongst the noteworthy debts detailed in the individual bankruptcy filing:

— $45 million for a construction mortgage linked to a property at 42183 Osgood Road in Fremont. New York state-primarily based Acres Funds, as a result of an affiliate, was shown as the financial institution.

— $40.7 million for a design financial loan connected to a home at 1821 to 1873 Almaden Highway in San Jose. Acres Funds presented the financing.

— $39.6 million for a building personal loan linked with a website on Balbach Street in downtown San Jose.  Silicon Sage Builders has made and done a household complex at 180 Balbach known as Aura. Chicago-primarily based Key Finance Companions was outlined as the service provider of the bank loan.

— $13.9 million for a land mortgage at 37358 to 37482 Fremont Blvd. in the Centerville space of Fremont. Beverly Hills-based mostly Bolour Associates is outlined as the loan company.

— $8.3 million for a land mortgage at 41965, 41911 & 42021 Osgood Street in Fremont. Bolour Associates presented the financial loan.

— $7.9 million for a building personal loan and land bank loan for a web-site at 1313 Franklin St. in Santa Clara. Bolour Associates is detailed as the lender.

— $5.98 million for a land financial loan at 2101 to 2149 Alum Rock Ave. in San Jose. Los Angeles-based mostly Parkview Economical is detailed as the loan company.

— $4.9 million for a land personal loan at 510 to 528 S. Mathilda Ave. in Sunnyvale. Bolour Associates is the lender.

— $3.6 million for a land financial loan at 1368 El Camino Genuine in Santa Clara. On Jan. 11, lenders began foreclosure proceedings to seize the property by means of a  observe of default filing for a $3.5 million mortgage which is delinquent. The financial loan relates to the office environment and retail segment of the home, which has been designed and is acknowledged as Madison Park.

— $2.9 million for a constructing loan at 560 S. Mathilda Ave. in Sunnyvale. Acharya’s major enterprise, Silicon Sage, maintains its headquarters at this locale.

— $1.8 million for a land financial loan at 1661, 1663, and 1665 Alum Rock Ave. in San Jose.

Parkview Money REIT, the lender for 2149 Alum Rock in San Jose, mentioned that the borrower defaulted on a bank loan issued in September 2020.

The September time body would seem to be of desire since Acharya attained that mortgage right after he experienced now admitted to investors that had manufactured mistakes over the years in how he had taken care of his serious estate empire. In conferences with traders around August 2020, Acharya appeared to acknowledge that he had created some glitches more than the many years, according to files filed by the SEC.