Thompson San Antonio-Riverwalk faces foreclosure auction after default on $44 million refinancing loan
Foreclosure notice targets hotel portion of mixed-use tower at 115 Lexington Avenue
The Thompson San Antonio-Riverwalk, a 20-story luxury hotel along downtown’s River Walk, is scheduled for sale at a Bexar County foreclosure auction next month following a default tied to a $44 million refinancing arranged in 2024.
The borrower is Lex Avenue Hotel LLC, a company linked to Houston-based developer and investor DC Partners. The foreclosing party is Southern Realty Trust, which sought to enforce the loan after the borrower fell behind on required payments. The foreclosure notice states the borrower received multiple opportunities to bring the loan current but did not meet the repayment terms.
What is included—and what is not
The planned foreclosure sale applies to the hotel component of the property. The building also includes 59 condominium units marketed as the Arts Residences, which are not included in the foreclosure posting. The hotel is affiliated with Hyatt and includes 162 rooms and 33 suites.
- Property address listed in the foreclosure notice: 115 Lexington Ave., San Antonio
- Hotel scale: 162 rooms and 33 suites
- Mixed-use element: Arts Residences condominiums not part of the notice
- Debt cited: $44 million refinancing loan arranged in 2024
Timeline: from development to default
DC Partners began construction on the project in 2018 as part of a larger mixed-use development budgeted at about $130 million. The Thompson opened in 2021, entering a downtown market that has since added multiple new hotel options.
In 2024, the property’s ownership refinanced with loans that included Southern Realty Trust. The current foreclosure action follows missed payments under that refinancing.
Market conditions cited in the default
In communications surrounding the foreclosure, DC Partners attributed financial stress at the property to elevated interest rates, longer stabilization timelines for hospitality assets that opened during the COVID-19 era, and increased competition created by additional downtown hotel openings in recent years. The company described these issues as part of broader market dynamics affecting hospitality properties nationally.
The foreclosure process sets up a public sale in the county’s monthly auction cycle, where properties subject to posted notices may be sold to the highest bidder under the applicable rules for foreclosure sales.
What happens next
Bexar County foreclosure auctions are held on a monthly schedule. Unless the debt is resolved or the sale is otherwise halted under the terms permitted in the foreclosure process, the hotel portion of the Thompson San Antonio-Riverwalk is expected to be offered at auction next month.
Any outcome could include a transfer to a third-party bidder or a change in control tied to the foreclosing lender, depending on bidding and the final sale terms. The foreclosure notice does not, by itself, determine future operations or branding at the site.