The former CPS Energy headquarters in downtown San Antonio is facing foreclosure after a high-profile hotel conversion by Blueprint Hospitality fell apart.
The developer, which has offices in Chicago and Houston, intended to convert the office building at 145 Navarro Street into a 243-room hotel under Marriott’s Autograph Collection brand, but it now faces legal battles and foreclosure proceedings due to alleged loan defaults and escalating financial difficulties, the San Antonio Business Journal reported.
The firm acquired the property two years ago and secured a $14.35 million loan from TransPecos Banks to finance the redevelopment. However, it defaulted on two loans last year — one from TransPecos and another from BV Capital.
The loans were transferred to 5 Senses Hospitality Management, a Colorado-based hotel company operating under the entity Riverwalk Reposition Partners LLC. The entity issued a default acceleration notice to Blueprint in July and sued, demanding repayment of $16.7 million, including interest, late fees and legal fees.
At the center of the lawsuit is the deteriorating condition of the property. The owner of the debt alleges that Blueprint left the building in poor condition.
“The basement of the building is flooded, and mold and other issues associated with standing water have developed,” the lawsuit stated.
Water damage seeped through multiple floors, and mold visibly spread from the basement, according to court filings. A malfunctioning water fountain on the seventh floor also allegedly contributed to flooding.
Blueprint Hospitality, which denied the allegations in a September court filing, hasn’t commented on the foreclosure, and neither has 5 Senses Hospitality Management.
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With the building’s condition worsening, the 5 Senses Hospitality entity is pushing for a court-appointed receiver to take control of the property and oversee the foreclosure process. If the court approves, the debt owner could take ownership of the building following a foreclosure sale scheduled for Nov. 5.
The sale will be handled by substitute trustees James Hollerbach, Jennifer Gallaway, Stacy Kellner and Ryan Lorenz of Hollerbach & Associates.
— Andrew Terrell