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The purchase of the fraud-linked city of San Jose apartment complex has stopped.

SAN JOSE – A large city, San Jose apartment complex, embroiled in a Bay Area real estate fraud case, has been bought in a deal that could return some cash to investors who were billed by its developer.

Carmel Partners, working through an affiliate, has brought an apartment complex at 138 Balbach St. in San Jose, near the city’s convention center, with documents filed with the Santa Clara County Recorder Office show Oct. 13.

According to county property files, CP VII One38, a Carmel partner, pays just under $ 53.5 million for the apartment complex.

The 101-unit residential complex, known as One38 Apartments, is one of several Bay Area projects that were part of the Bay Area Real Estate Empire, which was abandoned by failed developer Sanjeev Acharya and his fraudulently linked company, Silicon. Sage made.

The Securities and Exchange Commission has accused both Acharya and Silicon Sage of fraudulent activities that have defrauded hundreds of investors, many from the South Asian community.

A federal judge has transferred Silicon Sage’s assets to the receipt. Court-appointed recipient David Stapleton has embarked on a lengthy process of finding property buyers and trying to save money from a collapsing and bankrupt real estate empire.

The first property sold through the receiver’s efforts is the commercial part of Madison Place, a mixed-use residential and commercial complex in Santa Clara at 1364, 1374 and 1378 El Camino Real.

On September 29, Newport Beach and Las Vegas-based investment groups paid less than $ 2.6 million for ground floor retail and office space in Madison Place. Condominium, a unit for sale owned by individuals, was not involved in the transaction.

The One 38 apartments in San Jose are considered the most expensive of the Silicon Sage properties.

The residential complex is complete, has a high level of tenant occupation and is located in one of the adjoining parts of the San Jose district of Sofa.

Carmel Partners, the new owner of the complex, specializes in apartment building ownership.

After a formal inspection of the new apartment building, Carmel Partners decided to pay a little less than the original proposed price of 54.2 million.

The court record states that “as a result of reasonable precaution, the buyer requested a reduction in the purchase price and after negotiations, the recipient agreed that the appropriate reduction was $ 750,000.”

The final agreed price was. 53.45 million, according to federal court documents.

JLL, a commercial real estate firm, marketed the property in an effort that led Carbell Partners to enter into an agreement to purchase Balbach Apartments.

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