The 5150 El Camino Real property in Los Altos, site of an approved high-density housing project, is up for sale again after going into receivership.
According to newly published real estate information online, Borelli Investment Co. of San Jose is the listing broker on the 3.8-acre property, which has an asking price of $60 million. A court confirmation hearing is scheduled Sept. 9.
“There is a highly qualified buyer and an accepted letter of intent,” chairman Ralph Borelli said last week. “A purchase and sale agreement is being drafted. We’re accepting backup offers.”
The prospective buyer has until Aug. 12 to produce a deposit and then would proceed with the court confirmation hearing. The hearing will include an overbid process, in which other prospective buyers can overbid in incremental amounts of $1 million. A judge decides on the buyer and payment on the property must close within 10 days.
“This is attracting a lot of attention,” Borelli said.
The former property owner, Dutchints Development LLC of Los Altos, lost the property in receivership after defaulting on a $41 million loan. Investors convinced a Santa Clara County Superior Court judge June 24 to stay foreclosure for 90 days. Dutchints is mired in multiple lawsuits alleging misappropriation and mismanagement of investor funds.
The site, where a 76,500-square-foot office complex currently sits, is approved for a 196-unit housing project. Approved by the Los Altos City Council in 2019, the project includes 172 condominiums in two five-story buildings and 24 townhouses in two three-story complexes. Also included in project approvals are 28 units (12 moderate income and 16 very-low income) set aside for affordable housing.
Dutchints’ lender, Loancore Capital Credit REIT, filed a notice of default in March. Loancore sold the note for to West Coast luxury apartment developer Prometheus Real Estate Group. Borelli said the property could go to either Prometheus, the incumbent buyer or another buyer in the overbid process.
Borelli’s sales package advertises the property as “a fully entitled development opportunity,” with the already approved plans for the housing project.
Although Dutchints offices have been at the 5150 site and signage at the location still includes Dutchints as an occupant, the broker advertises that the building “will be delivered vacant.”
Altos One project progresses
Another Los Altos high-density housing development, at 4846-4856 El Camino Real, secured clearance last month for demolition and building permits. Developer Mircea Voskerician said the existing buildings at 4846 and 4856 El Camino, approved by the Los Altos City Council in 2018, are scheduled to be demolished in October to make way for the 52-unit housing project.
The five-story, all-condominium building, dubbed Altos One, will include 10 below-market-rate units, six of them for rent in the very-low-income category. The development also would include 108 underground parking spaces.