The lender behind a troubled conversion in downtown San Antonio is asking a bankruptcy judge to take the project out of the owner’s hands, citing mounting debt, mold damage and “a pipe dream” of a business plan, the San Antonio Express-News reported.
Riverwalk Reposition Partners, an LLC that holds a $14.4 million note on 145 Navarro Street, blasted the building’s owner, an affiliate of Blueprint Hospitality, in a recent court filing.
The affiliate defaulted shortly after refinancing the former CPS Energy headquarters, which it bought in 2021 for $19 million with plans to convert it into a 243-room Marriott Autograph Collection hotel called El Portal.
The lender accused the borrower of failing to meet basic financial obligations, including paying 2024 property taxes, maintaining insurance and covering utility bills, which has left the building without electricity. Contractors and suppliers have filed about $8 million in liens while a flooded basement has led to mold growth, which has yet to be remediated.
“This case is directionless,” the lender’s attorneys wrote, asking a judge to either dismiss the bankruptcy entirely or appoint a trustee with hotel development experience to take over. They described a consistent pattern of “excuses” and said the company failed to offer any viable business plan.
The Blueprint affiliate filed for bankruptcy in February, listing $3 million in assets and $29.4 million in liabilities, and initially assigned no value to the Navarro Street building. The company later revised its filings, stating the property is worth $46.7 million and its total assets at $49.7 million.
The developer’s attorney told the court they are working on organizing the company’s books and securing debtor-in-possession financing to continue operations through reorganization. But the lender’s attorneys said they’ve received little useful information and aren’t willing to extend financing without clearer oversight.
Bankruptcy Judge Christopher Lopez, who denied a motion to move the case to San Antonio, will hear arguments in April on environmental remediation and potentially appointing a chief restructuring officer. The lender originally appeared on the creditor list both as secured and unsecured, but was removed as an unsecured creditor in the revised documents.
— Judah Duke
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