Carmel Partners Bids $54.2MM to Buy San Jose Multifamily Asset Part of Bankrupt Developer’s Portfolio

Carmel Partners, 138 Balbach, One38, San Jose, Silicon Sage Builders
Courtesy of One38.

By Meghan Hall

The first property part of Silicon Sage’s Portfolio has found a buyer after efforts to auction off the bankrupt developer’s assets began several months ago. According to industry reporting, a new apartment complex located at 138 Balbach St. in San Jose has received a bid from Carmel Partners. Carmel Partners intends to purchase the property for $54.2 million, or about $536,622 per unit.

The complex was completed in 2019 and is known as “One38.” The community features 101 units which are a mix of two- and three-bedrooms that range between about 1,000 square feet and 1,656 square feet in size. According to Apartments.com, rents for the units range between $3,295 and $4,725 per month.

“Our property has everything you’re looking for. One38 apartments in Downtown San Jose, CA, offers luxury for lease residences walking distance to great dining, transit, adjacent to freeways, parks, museums, and theaters,” the property’s website states.

Community amenities include outdoor seating with a fireplace and picnic tables, a dog park, fitness center, barbecue pit and clubhouse with activities and a game table. Individual residences are equipped with oak cabinets, private balconies and stainless steel appliances, among other bells and whistles. 

The property is part of a larger portfolio that Court-appointed receiver David Stapleton has been tasked to sell, so that investors and creditors who initially backed Silicon Sage developments can recoup their investments. For One38, about $12.6 million will remain from the sale, after payouts to the lender, contractors and brokerage firm JLL, to repay creditors, according to court documents.

Silicon Sage’s portfolio spans a number of assets in Santa Clara, Sunnyvale, Fremont, Mountain View and Menlo Park, according to the company’s website. In recent months the Securities and Exchange Commission has accused linked the firm to a federal securities fraud case, prompting the execution of the receivership and subsequent sale of its assets.

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