Sares Regis Buys Housing Development Site in Los Gatos

A Los Gatos development site that was once slated for housing is under new ownership after the previous plans crashed and burned.

Sares Regis Group of Northern California acquired 405 Alberto Way in Los Gatos for $11.8 million, the Mercury News reported, citing records from the Santa Clara County Recorder’s Office. The property was sold by an unnamed lender, which paid $11.3 million to foreclose on the property last August. Sares Regis Group obtained an $11.3 million loan from Stearns Bank at the time of acquisition.

Los Gatos officials previously approved plans for a 78-unit housing development at the site near downtown Los Gatos. Some of the units would have been designated as affordable housing.

The 405 Alberto Way property was thrust into the spotlight in 2024 when tech investor Gideon Marks accused Randy Lamb, the developer of the proposed luxury housing project at the site, of defrauding him of nearly $800,000, the Los Gatan reported at the time. Marks claimed Lamb owed him $250,000 for the Los Gatos project, in addition to money for other Silicon Valley developments in Mountain View and Palo Alto. That complaint followed another lawsuit filed in 2020 against Lamb, Lamb Partners LLC and 405 Alberto Way LLC.

The 405 Alberto site was notable at the time of its housing proposal as it relied on newly implemented state laws, including Senate Bill 330, that allowed developers to avoid many planning obstacles. That plan called for a four-story mixed-use offering with 52-units of residential, including eight affordable.

When Los Gatos passed its housing element, it rezoned the land for more housing. Lamb ended up letting his SB 330 development rights expire, though he told the Los Gatan in 2024 that he planned on bringing the project back as a taller development with more units. The latest proposal calls for two six-story buildings totaling 78 units, including 13 affordable units.

While the goal was to have broken ground a year ago, the land still remains empty. Sares’ plan for development, including whether it will keep the previous owner’s proposal in place, has not been disclosed.

— Chris Malone Méndez