After years of sitting idle, the long‑vacant two‑acre parcel at 405 Alberto Way in Los Gatos finally has a new owner. Sares Regis Group of Northern California closed this week on the site, paying just under $11.8 million for the property where a previous housing plan stalled when its developer hit financial trouble. The sale revives the possibility that a 78‑unit proposal already on file could move forward, and neighbors as well as town officials will now be watching to see whether Sares Regis sticks with the existing plan or brings in a redesigned version.
County records show the deal closed on April 29 for just under $11.8 million, with the buyer also taking on roughly an $11.3 million loan tied to the purchase, as reported by The Mercury News. The deed identifies the seller as the lender that had stepped in after the former owner defaulted last year, a reminder of how financing strains and construction costs have reshaped the math on mid‑size Bay Area housing projects.
Developer default and bank action
Public records indicate the site’s original sponsor, LPG 405 Alberto Way Residential LLC, filed for Chapter 11 bankruptcy in October 2024, kicking off a string of motions and hearings through 2025. BKAlerts shows an August 2025 order that allowed Stearns Bank to lift the automatic stay and move ahead with recovery efforts. Local coverage traced additional civil claims and disputes tied to the stalled project before the lender ultimately took control of the property, as Los Gatan documented, along with the lot’s lingering vacant status.
What’s already on file
Town planning materials describe a two‑building concept for the parcel, totaling roughly 78 units under the Housing Element overlay, with podium parking and street‑level commercial or service space. Staff reports outline portions of the site reaching six stories, along with a mix of market‑rate and affordable units, which means Sares Regis could lean on existing entitlements if it decides the current layout still pencils out, according to the Town of Los Gatos. Public marketing materials mirror that unit count and basic configuration, as seen in the site’s listing on Crexi, suggesting the current approvals remain a practical starting point.
New owner’s track record
Sares Regis has a history of finishing or repositioning large, transit‑adjacent projects, including the residential phases of Sunnyvale’s CityLine neighborhood, work the company highlights on its own site. That experience with complex infill sites could help the firm navigate permitting, line up partners and move into construction if it opts for an aggressive schedule. Whether Sares Regis builds out the already approved 78‑unit concept or comes back with a fresh design will drive how quickly any shovels hit the ground, as reflected in the company’s Sunnyvale portfolio on Sares Regis Group.
Next steps and timeline
If Sares Regis chooses to proceed under the existing entitlement, local residents can expect neighborhood outreach and a staff review, followed by Planning Commission and potentially Town Council hearings for any substantial changes. The original application materials anticipated community meetings as part of the review, which could shorten the schedule if the developer mostly sticks to the previously approved massing and unit mix, according to the Town of Los Gatos. Financing conditions and construction costs remain big variables, so even with the ownership question settled, the project is still likely to unfold over an extended period.
For Los Gatos, turning a long‑empty parcel just off its core into housing would mark a meaningful win after a stretch of stalled proposals. Whether 405 Alberto Way ultimately delivers the 78 units already on the books or a reworked version of that plan, the sale clears a major ownership hurdle and gives the town a more straightforward path toward adding new homes near its downtown. We will continue to track public filings and hearing dates as Sares Regis lays out its next moves.
