East Bay Housing Project Stalls Amid $28M Default
A critical housing development in Hayward is now in jeopardy after its Texas-based owner defaulted on a $28 million loan. This setback raises significant questions about the future of a project that was poised to deliver hundreds of new homes to the supply-constrained East Bay. For Bay Area residents tracking local development, this news highlights the ongoing challenges in bringing much-needed housing to fruition.
The Hayward Development in Question
The property, located at 22330 Main Street, was acquired by an entity linked to real estate entrepreneur Amit Goel in 2023 for $15.8 million. Following the purchase, Goel secured a $28 million loan from Timberlake Mortgage. The plan was to build 314 apartments, including 19 units designated for low and very-low-income residents, alongside 7,100 square feet of retail space.
Hayward officials had approved the project in 2022, seeing it as a vital step toward increasing local housing supply. Despite the approvals, construction never commenced, and now the loan delinquency casts a shadow over its completion.
Meeting Hayward’s Housing Mandate
This stalled development comes at a challenging time for Hayward. The City is under a state mandate to plan for 4,624 new housing units by 2031 as part of its housing element requirements. Projects like Goel’s were considered essential contributors to meeting these ambitious targets. The default underscores the complexities and financial pressures facing developers, even for projects with clear community benefits.
Local Development Landscape
While this project faces uncertainty, other developments are moving forward in Hayward. Another proposed housing project, a four-story, 30-unit complex by Zibasara at 22422 Rockaway Lane, received approval last year. Beyond residential, the commercial landscape has also seen recent activity, with Namdar Realty Group acquiring the Southland Mall for $70 million cash earlier this month.
Project Financials at a Glance
| Metric | Details |
|---|---|
| Property Address | 22330 Main Street, Hayward |
| Purchase Price (2023) | $15.8 Million |
| Loan Amount (Defaulted) | $28 Million |
| Proposed Units | 314 Apartments |
| Affordable Units | 19 (low/very-low income) |
| Retail Space | 7,100 sq ft |
Frequently Asked Questions
- What does a loan default mean for the project?
A loan default typically means the borrower failed to make required payments, putting the property at risk of foreclosure by the lender, Timberlake Mortgage. This could lead to the site being sold or new financing being sought, causing significant delays. - Who is Amit Goel?
Amit Goel is a Texas-based real estate entrepreneur. While facing this challenge in Hayward, he recently navigated a complex refinancing for a $130 million loan on a multifamily property in Aurora, Illinois, suggesting experience with high-stakes financial situations. - Why is this project important for Hayward?
The 314-unit development was seen as a crucial step towards addressing the city’s housing shortage and meeting state-mandated housing goals. Its stalling could impact the availability of new homes, particularly affordable units, for residents. - Are other housing projects in Hayward affected?
The article primarily focuses on Goel’s project. While other developments are mentioned, there’s no indication that they are directly impacted by this specific default. Each project typically has its own financing and challenges.
The future of 22330 Main Street remains uncertain. This situation reminds us that even with strong demand and local approvals, the path to creating new housing in the Bay Area is often fraught with financial hurdles, and residents should continue to monitor local development news for updates.
East Bay Housing Project Stalls Amid Default
