Dallas-based Ashford Hospitality Trust has made a $32 million cash offer to acquire a troubled property in downtown San Antonio, according to an Aug. 20 filing in federal bankruptcy court reported by the San Antonio Business Journal. The property at 145 Navarro Street was formerly the headquarters of CPS Energy.
The current owner, an affiliate of Houston-based Blueprint Hospitality, filed for bankruptcy in February after its plan to convert the building into a hotel stalled. The lender for the project, Riverwalk Reposition Partners—an LLC linked to Austin’s WM Capital Partners—holds a $14.4 million note on the building and has requested that a bankruptcy judge remove control from the current owner due to increasing debt, mold issues, and what it described as “a pipe dream” business plan.
According to court documents, the borrower failed to pay 2024 property taxes, maintain insurance coverage, or pay utility bills. As a result, electricity service was cut off and contractors have filed about $8 million in liens against the property. A flooded basement has also caused mold growth that remains unaddressed.
Blueprint acquired the building in 2021 for $19 million with plans for an office-to-hotel conversion into a 243-room Marriott Autograph Collection hotel named El Portal. After refinancing, Blueprint defaulted on its obligations shortly thereafter. In recent filings, Blueprint stated that any sales agreement would include its existing contract with Marriott International and allow principals of its 145 Navarro entity to retain some ownership interest.
Additionally, Blueprint plans to separately transfer ownership of the garage connected by sky bridge to ERC Acquisitions. The proposed settlement would resolve all secured claims against Blueprint’s ownership entity and includes approximately $168 million in potential loans earmarked for completing conversion work.
Bankruptcy Judge Christopher Lopez is expected to review and possibly approve the deal next week.
“Monty Bennett’s Ashford Hospitality Trust offered a cash purchase of $32 million,” according to court records cited by local media outlets.
“The lender behind the fraught conversion… holds a $14.4 million note on the building,” documents show.
“The lender accused the borrower of failing to meet basic financial obligations… which has left the building without electricity.”
“Contractors and suppliers have filed about $8 million in liens…”
“The Blueprint affiliate defaulted shortly after refinancing… which it bought in 2021 for $19 million with plans to convert it into a 243-room Marriott Autograph Collection hotel called El Portal.”
“Blueprint said in the filing that the sales agreement would include the existing contract with Marriott International and principals of Blueprint’s 145 Navarro entity would retain ownership interest.”
“Blueprint would separately convey the garage portion of the property…to ERC Acquisitions.”
“The settlement would include all secured claims against the building’s ownership entity.”
“Blueprint teed up roughly $168 million in potential loans…”
“Bankruptcy Judge Christopher Lopez might consider and sign off on the deal next week.”
