New York-based Loren Group closed on the Thompson Hotel in Downtown San Antonio for $41 million.
Loren, a luxury hospitality and residential development company, purchased the River Walk-area hotel from Sunrise Realty Trust. The Thompson, which sits at 115 Lexington Avenue, boxed in by Lexington, North Saint Mary’s Street, Auditorium Circle and the San Antonio River, has 162 rooms and 33 suites. The building the hotel sits in is also home to the Arts residences, a 59-condo residential project. The Arts Residences were not a part of the sale, according to the San Antonio Express-News.
In a statement, Loren said they chipped in $9 million in cash and acquired a $32 million senior loan from Sunrise Realty and its affiliate for the building. They also plan to chip in $10 million in property improvements, according to the outlet.
Sunrise Realty and Southern Realty Trust, a pair of commercial lenders that are in the process of closing a merger, shelled out $41 million for the Thompson Hotel in March at a Bexar County foreclosure auction. Sunrise owned 65 percent of the joint venture, which means the company nabbed $26.7 million of the gross sale price. $20.8 million of that figure is in interest on the new loan on the property, according to the outlet.
Houston-based DC Partners, who kicked their keys back to Sunrise earlier this year, said the distress was due to a number of market headwinds. They opened too close to the pandemic in 2021, and a new wave of downtown hotels opened up and they couldn’t stabilize in time. Essentially, the fundamentals of the hotel are perfectly fine, it was the market conditions and high interest rates that did them in, according to the firm. DC spent $130 million constructing the building and partially funded it with international investment through the federal EB-5 visa program, according to the outlet.
— Hunter Cooke
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