A Dallas-based hospitality firm, Ashford Hospitality Trust, has made a $32 million cash offer to acquire a troubled property in downtown San Antonio. The proposed acquisition was disclosed in an August 20 federal bankruptcy court filing.
The building at 145 Navarro Street, previously the headquarters of CPS Energy, was purchased by an affiliate of Houston’s Blueprint Hospitality in 2021 for $19 million. The affiliate planned to convert the site into a 243-room Marriott Autograph Collection hotel named El Portal but filed for bankruptcy earlier this year.
Riverwalk Reposition Partners, a lender affiliated with Austin-based WM Capital Partners, holds a $14.4 million note on the property. In March, the lender requested that the bankruptcy judge remove control from the owner due to rising debt and significant property issues including mold damage and unpaid bills. According to court filings, “a pipe dream” business plan was cited as one reason for intervention.
The lender also accused Blueprint’s affiliate of missing key financial obligations such as paying 2024 property taxes and maintaining insurance coverage. As a result, electricity service was disconnected and contractors have placed approximately $8 million in liens on the building. Flooding in the basement has led to mold growth that remains unresolved.
Blueprint defaulted soon after refinancing its purchase and said in its filing that any sale would preserve the existing contract with Marriott International while allowing principals of its entity at 145 Navarro to retain some ownership interest.
Additionally, Blueprint plans to transfer ownership of an adjacent garage connected by sky bridge separately to ERC Acquisitions. The proposed settlement aims to resolve all secured claims against Blueprint’s ownership entity. To support conversion work at the site, Blueprint had arranged up to $168 million in potential loans.
Bankruptcy Judge Christopher Lopez is expected to review and possibly approve the deal next week.
