SAN ANTONIO – A prominent downtown hotel is listed for the auction block.
The Thompson San Antonio - Riverwalk hotel is under a notice of foreclosure sale, according to Bexar County records. Affiliated lenders Sunrise Realty Trust and Southern Realty Trust have issued a default notice for the hotel portion of the building at 115 Lexington Ave., which the two refinanced with a $44 million loan in 2024. The building’s uses are split by a condominium agreement. Only the “hotel unit” is affected by the notice.
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In the Feb. 6 notice, the two lenders say they offered the developer four chances to remedy the default throughout 2025.
In an unattributed statement through a spokesperson, DC Partners said longer-than-expected stabilization timelines, a new crop of downtown hotels, and the high-interest-rate environment have all hurt the Thompson’s performance.
“These factors — including opening during COVID and a broader softness in the San Antonio hotel market — created challenges that were not anticipated and challenging to overcome,” the firm wrote. “This is not a reflection of the quality of the asset or the long-term viability of the project, but rather a convergence of market forces affecting many developers across the country.”
Developed and delivered by Houston-based DC Partners in 2021, the property features 162 rooms and 59 condos. The move comes just 18 months after the REITs committed to refinance the property with the $44 million senior loan. DC Partners struck a $38 million refinance deal from Miami-based 3650 REIT in 2022.
Through a representative, Sunrise and Southern declined to comment for this story.
In August 2024, Brian Sedrish, chief executive of both Sunrise and Southern, said the refinancing supports DC Partners’ growth in Texas and the hotel’s ability to support a growing market for upscale accommodations.
“We believe that being selected to provide financing for DC Partners again illustrates our ability to provide flexible, timely financing solutions tailored to our borrowers’ unique needs and our commitment to growing with them,” he said at the time.
The foreclosure auction is scheduled for March 3 at the Bexar County Courthouse.
Editor’s note: This story was published through a partnership between KSAT and the San Antonio Business Journal.
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