Completed San Jose apartment project tainted by fraud allows sales to begin

SAN JOSE — A San Jose apartment complex embroiled in a massive real estate fraud has been completed, allowing sales of units within it to begin.

A San Jose apartment complex is among a number of Bay Area properties linked to a South Bay real estate executive who investigators say defrauded hundreds of investors in a federal case.

A 91-unit apartment building at 1821 Almaden Road in San Jose. (George Avalos/Bay Area News Group) — A 91-unit residential building at 1821 Almaden Road in San Jose.

The 91-apartment complex is located at 1821 Almaden Road in San Jose. The apartments are for sale, U.S. District Court documents show.

A court-appointed trustee is handling the sale of condos and other properties that make up the Bay Area real estate empire built in recent years by Sanjeev Acharya, CEO of Silicon Sage Builders.

“All units have been completed,” the trustee said in court documents filed June 12. “The trustee is still finalizing the project’s amenity offerings, including the gym, pool, spa and community room. All landscaping has been completed.”

In 2020, the Securities and Exchange Commission charged Acharya with fraud, alleging that he defrauded 250 unwitting investors, many of whom were from South Asia, out of about $119 million invested in Acharya’s projects and his company Silicon Sage.

A federal judge has placed all of Acharya’s assets, including his sprawling Bay Area real estate empire, into receivership as he tries to resolve the financial turmoil.

The 1821 Almaden complex is home to 91 apartments that are being put up for sale as a way to raise funds that could help defrauded investors recoup at least some of their investments, a court-appointed trustee said in legal papers filed in U.S. District Court in San Francisco.

According to court documents, the project has obtained all necessary consents to allow the premises to be occupied.

“The recipient continues efforts to remove debris and construction materials from the garage to allow the homeowners full access to all parking spaces,” according to court documents.

A similarly sized project in Fremont that was part of Acharya’s property is much further along in the sale process. The Fremont condominium project is located at 42111 Osgood Road.

“The Osgood apartment project, owned by Osgood, has been completed and all units are in closed escrow,” according to court documents.

The Fremont apartment complex consists of 93 apartments.

As for the San Jose apartment complex at 1821 Almaden, the next major activity will likely focus on finalizing the sale of the homes.

It is unclear whether, and if so, how much of the money from the sale of the property will go to the defrauded investors.

“The recipient continues to support the sales efforts of the Almaden units and has coordinated signage for marketing purposes and the development of the sales website,” court documents state. “As of the date of this report, 38 units in Almaden are under contract and seven units have closed. The recipient is exploring options to increase the pace of sales at the project.”

Originally published: July 26, 2024 at 5:25 AM