Investor buys Sunnyvale properties once owned by SiliconSage Builders accused of fraud

A Saratoga-based investment firm bought the office building and apartment property on Mathilda Avenue

San Francisco /
Oct.October 19, 2021 01:38 PM
510 S Mathilda Ave (loopnet.com, iStock)

Less than a year after the Securities and Exchange Commission filed fraud allegations against SiliconSage Builders, an investment firm from California’s Saratoga has bought multiple properties once owned by the now-bankrupt developer.

The office building and adjacent apartment property, located at 510 and 518-528 S Mathilda Avenue in Sunnyvale, were bought by Sam Cloud Barn, an affiliate of Bay Area real estate investor Shawn Taheri, for $6.45 million, the Mercury reported. Teheri’s group was able to buy the properties with the help of a $2.67 million loan from Citizens Equity First Credit Union.

The Mathilda Avenue properties are only part of the Bay Area real estate portfolio that belonged to SiliconSage and the company’s head, Sanjeev Acharya. He faces multiple charges that he committed fraud against hundreds of investors, particularly those of South Asian descent.

The complaint against SiliconSage claimed the company falsely told investors that some interest payments came from the firm’s profits, although they actually were from new investors. It also said that despite telling investors they could redeem capital after a year, Acharya “repeatedly declined capital redemption requests from certain investors” because he didn’t have enough money.

SiliconSage’s properties are being marketed for sale by David Stapleton, a receiver who was authorized by a federal court to try to raise money to return to those who were defrauded. Stapleton faces a number of obstacles. In at least one case, a lender is threatening to foreclose on the property in which it invested to seize ownership.

Other SiliconSage properties linked to the fraud cases that have recently been bought include office and retail units in the Madison mixed-use development on El Camino Real in Santa Clara and the One38 Apartment complex in downtown San Jose. The Santa Clara properties sold for $2.6 million and the apartment building on Balbach Street was bought by an investment firm for $53.5 million.

[Mercury] — Victoria Pruitt





    Related Articles

    arrow_forward_ios
    Dropbox, Golden State Warriors appealing SF property assessments
    Dropbox, Golden State Warriors appealing SF property assessments
    Dropbox, Golden State Warriors appealing SF property assessments
    “Fourplexes everywhere”: San Francisco citywide upzoning advances
    “Fourplexes everywhere”: San Francisco citywide upzoning advances
    “Fourplexes everywhere”: San Francisco citywide upzoning advances
    The Corrals and river (The Ranch Agent)
    Dean Witter’s 26,000-acre ranch to become northern California park
    Dean Witter’s 26,000-acre ranch to become northern California park
    CitiGroup CEO Jane Fraser with One Sansome Street (CitiGroup, Premier Workspaces)
    Citigroup to leave longtime SF home, cut office footprint by half
    Citigroup to leave longtime SF home, cut office footprint by half
    Former San Francisco building commissioner, inspector indicted on fraud charges
    Former San Francisco building commissioner, inspector indicted on fraud charges
    Former San Francisco building commissioner, inspector indicted on fraud charges
    Renderings of the Santa Clara Station Project and Republic Metropolitan President Robert H. Mendelsohn (City of Santa Clara, Republic Metropolitan)
    Developer Re/Met claims Santa Clara violated state housing law, breached contract
    Developer Re/Met claims Santa Clara violated state housing law, breached contract
    William Randolph Hearst III and his new property (Realtor.com via Arthur Goodrich / Sotheby's International Realty)
    Hearst heir buys Calistoga home for city record of $9.5M
    Hearst heir buys Calistoga home for city record of $9.5M
    Lake Tahoe estate listed at $60M goes into contract
    Lake Tahoe estate listed at $60M goes into contract
    Lake Tahoe estate listed at $60M goes into contract
    arrow_forward_ios

    The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

    Loading...