East Bay retail and dining hub in swanky neighborhood faces foreclosure

DANVILLE — An East Bay retail and dining hub that has fallen on hard times faces receivership and a loan foreclosure as tenants depart or shun the high-profile commercial center that serves a posh enclave next to the property.

Blackhawk Plaza, a one-time magnet for shoppers, restaurant goers, and moviegoers in Danville, is losing tenants, and its principal owners may lose control of the property, depending on the outcome of a court proceeding in Southern California.

Draeger’s Market, the primary anchor for Blackhawk Plaza, recently revealed a decision to shut its doors and decamp from the center, which is next to the ultra-wealthy Blackhawk neighborhood in Danville. Blackhawk Plaza has addresses that include 3340, 3464, 4000, 4024, 4050, 4080, and 4100 Blackhawk Plaza Circle, public records show.

Nano Banc, which in September 2024 provided $5 million in financing to the principal owner of Blackhawk Plaza, an affiliate of Ramanujan Group, has filed a lawsuit that ultimately seeks a receiver that can accomplish a foreclosure of the property’s loan, documents in Orange County Superior Court show.

While all of this is going on, a group of commercial property owners at Blackhawk Plaza have filed a lawsuit in Contra Costa County Superior Court that paints a picture of deteriorating conditions at the once-vibrant retail and dining hub.

“Defendants (Ramanujan Group and its affiliates) have ignored maintenance and repair obligations, thus allowing the slow decay of the Plaza,” the business owners stated in the Contra Costa County court filing.

The businesses that filed the lawsuit include the owners and operators of the Blackhawk Automotive and Cultural Museum and office building owners in the plaza, court records show.

“Ever-widening cracks and potholes in parking lots, decrepit and non-functioning light stanchions, rusted and broken staircase railings, crumbling stairs, broken and inoperable irrigation pipes, unclean water, and dangerous erosion of soil” were among the problems listed at Blackhawk Plaza, the complaint states.

Some of the problems, the lawsuit claims, appear to be life-threatening. “Open and live wiring” are among these hazards, according to the lawsuit. The complaint includes several photographs of deterioration and hazards as documentation.

Ramanujan Group, through one of its principal officials, Deba Shyam, denied the allegations about poor maintenance at the center, according to a 2024 filing in county court. The lawsuit is still proceeding through the court system.

Another court proceeding could imperil Ramanujan Group’s ability to remain as owners of Blackhawk Plaza. Court proceedings are underway in Orange County regarding the lender’s attempt to place a receiver in charge of the property.

“On or about March 10, 2025, the borrower (Ramanujan Group) stopped paying the required monthly payments owed under the loan documents,” Nano Banc stated in the Orange County filing. “The borrower also failed to pay the required property taxes for the property.”

As a result of these alleged difficulties, Nano Banc is urging the court to appoint a receiver to take charge of the property.

“Nano is in the process of commencing nonjudicial foreclosure proceedings and needs a receiver to manage, operate, and preserve the property pending the foreclosure sale,” the lender stated in an Orange County court filing.

Ramanujan Group has filed a countersuit against the lender, court papers show.

“This is an action for damages and equitable relief arising out of a concerted and escalating pattern of bad-faith conduct, misrepresentations, and targeted sabotage by the bank and its senior executives,” Ramanujan Group stated in a description of the purposes of the countersuit. The lender’s actions, Ramanujan Group asserted, were “aimed at harming the borrower and other affiliated borrowers.”

Nano Banc’s actions, Ramanujan Group claimed in the countersuit, triggered the loan default, the court documents state.

“The bank manufactured a default of the loan facilities at issue in this action by making false promises of an extension of the maturity date, among other things,” Ramanujan Group stated.

Ramanujan Group bought the Blackhawk Plaza complex in 2020, paying $28.3 million. At that time, real estate experts pointed out that the major challenge facing the commercial hub is the property’s significant distance from Interstate 680.

Yet when it was pristine, Blackhaw Plaza was frequently touted as a top-notch commercial hub.

“The plaza is a ‘one-of-a-kind’ open-air center, which combines village-style Mediterranean architecture, an aquatic landscaped interior, and welcoming terraced vistas that attract both tourists and neighborhood residents,” the Contra Costa County court papers state.