SANTA CLARA — A loan default has jolted a portion of a Santa Clara project developed by Sanjeev Acharya and Silicon Sage Builders, a fresh complication for the real estate executive who is accused of fraud by U.S. regulators.
The commercial component of Madison Park, a mixed-use development on El Camino Real, faces a mortgage default, foreclosure, and seizure by the property’s lender, according to Santa Clara County public records filed on Jan. 11.
The mortgage default is a new financial and legal difficulty for Acharya and his company Silicon Sage Builders, which both are the focus of a fraud complaint filed by the Securities and Exchange Commission.
The default proceeding is directed only at the retail and office portion of Madison Park. The default doesn’t affect the residential component of the property, the county documents show. The residences were developed as for-sale housing units to individual owners.
Silicon Sage and Acharya defaulted on a $3.5 million property loan that was issued in 2018, according to the public records.
Nine family trusts or individuals that issued the mortgage are now seeking to foreclose on the ground-floor retail and office parcels in the property, which is located at 1368 El Camino Real between Madison Street and Monroe Street in Santa Clara, the county documents show.
The SEC has accused Silicon Sage Builders and Acharya of a series of fraudulent actions over a period of roughly four years beginning in 2016, according to a complaint that the regulators filed on Dec. 21.
The SEC claimed that the