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.
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.”
Read more of this story at the San Antonio Business Journal website.
Editor’s note: This story was published through a partnership between KSAT and the San Antonio Business Journal.
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