Avery Bays Real Estate Development has been revealed as the mystery buyer of a future home on the Trader Joe’s market and an unsold condo in San Francisco’s Hayes Valley.
A San Jose developer led by Aaron Chang purchased the 16,700-square-foot grocery store and apartment complex at 555 Fulton Street, San Francisco Business Times reports.
The seller is embattled Z&L Properties, whose Chinese owners Zhang Li and the Hayes Valley building are at the center of a city corruption case. Terms of the deal were not disclosed.
The property for sale is announced in march Moderated by Superintendent Dean Preston, who represents the neighborhood. He called for a hearing to discuss stalled Trader Joe’s stores. A hearing was not held because the property would change hands.
The deal is expected to close in the coming weeks, with stakeholders hoping the sale will pave the way for Trader Joe’s to eventually open. It is expected to open this year, but Z&L has been working hard to complete the project.
The five-story building is embroiled in a City Hall corruption case against former San Francisco public works chief Mohammad Nuru. Lee was arrested in London in December for alleged involvement in Nuru’s kickback scheme to advance the 139-unit project.He was held under house arrest on $18.5 million bail and now faces extradition to the US
Z&L, which has offices in Foster City, purchased the 555 Fulton site in 2015, but the project has been dogged by delays that city officials blamed on the developer.
The firm was accused by city planners of redesigning the building without city permission after it was approved.
In early 2020, the project was at the center of a corruption investigation into Nuru, who was arrested on fraud charges after being accused of awarding lucrative city contracts to friends, accepting bribing gifts from developers and lying to the FBI.
Nuru is Sentenced to seven years in prison last summer After pleading guilty to honest services wire fraud involving bribes and kickbacks.
Meanwhile, Z&L Properties has been working hard to complete projects in San Francisco and San Jose.
In San Francisco, Z&L owes $2 million in back taxes to The Oak, a boarded-up 109-unit apartment building in 55 Oak Street.
In San Jose, 640 unpurchased apartments in the company’s new luxury complex at 188 West St. $300 million.
Financially troubled Z&L booked for statute violations in San Jose, faces $1,000 fine per day For overlooking a historic church at 43 East St. James Street.
— Dana Bartholomew
