A Dallas-based hospitality company, Ashford Hospitality Trust, has made a $32 million cash offer for a troubled property in downtown San Antonio. According to an Aug. 20 federal bankruptcy court filing cited by the San Antonio Business Journal, the building at 145 Navarro Street was previously the headquarters of CPS Energy.
The current owner, an affiliate of Houston’s Blueprint Hospitality, filed for bankruptcy in February after plans to convert the office building into a hotel stalled. The project was supposed to transform the property into a 243-room Marriott Autograph Collection hotel named El Portal.
Riverwalk Reposition Partners, an Austin-based WM Capital Partners affiliate and lender on the project, holds a $14.4 million note on the building. The lender requested that a bankruptcy judge remove control from the current owner due to mounting debt and significant issues with property maintenance, including unpaid taxes for 2024, lapsed insurance coverage, and unpaid utility bills that have resulted in loss of electricity at the site. Contractors and suppliers have filed about $8 million in liens against the property, and unresolved flooding has led to mold growth.
Blueprint defaulted soon after refinancing its purchase of the building in 2021 for $19 million. Despite these setbacks, Blueprint stated in court filings that any sale would keep intact its contract with Marriott International and allow principals from Blueprint’s 145 Navarro entity to retain some ownership interest.
Additionally, Blueprint plans to transfer ownership of a connected garage structure via sky bridge to ERC Acquisitions as part of separate arrangements. The proposed settlement would resolve all secured claims against the ownership entity associated with the building.
Blueprint had previously outlined up to $168 million in potential loans needed for conversion work on the property.
Bankruptcy Judge Christopher Lopez is expected to review and possibly approve Ashford’s offer next week.
