Sunrise and Southern Realty sell Thompson San Antonio hotel to Loren Group for $41M
The sale includes $9 million in cash and $32 million in seller debt after the sellers took the hotel at a March auction.
At a glance
Sunrise Realty Trust and Southern Realty Trust have sold the 162-key Thompson San Antonio to The Loren Group for $41 million, Connect CRE reported, citing Commercial Search for the buyer detail.
Only $9 million of the $41 million price is cash; the sellers issued the remaining $32 million in debt.
The $41 million price clears the March credit bid by $500,000, before transaction costs and the carrying expense of holding a luxury hotel through spring and summer.
Sunrise Realty Trust and Southern Realty Trust have sold the 162-key Thompson San Antonio to The Loren Group for $41 million, Connect CRE reported, citing Commercial Search for the buyer detail. Both trusts are part of Tennenbaum Capital Group Real Estate.
Only $9 million of the $41 million price is cash; the sellers issued the remaining $32 million in debt. The transaction closes a workout that began when DC Partners defaulted on the debt in February; at a March auction with no competing bidders, Sunrise and Southern took ownership of the hotel with a $40.5 million bid.
The $41 million price clears the March credit bid by $500,000, before transaction costs and the carrying expense of holding a luxury hotel through spring and summer. The Loren Group plans to spend $10 million on upgrades, according to the report.
The seller debt covers 78 percent of the price, leaving most of the recovery as a loan on the sellers' book rather than cash. The hotel occupies part of a 20-story tower that also contains 59 condominiums, a portion not included in the acquisition; the property opened in 2020 with a rooftop restaurant, spa, gym and 5,000 square feet of conference space.
| Item | Amount |
|---|---|
| Sale price | $41,000,000 |
| Cash from buyer | $9,000,000 |
| Debt issued by sellers | $32,000,000 |
| March credit bid by SUNS and SRT | $40,500,000 |
| Planned capital improvements | $10,000,000 |
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