Downtown’s Thompson San Antonio - Riverwalk is staring down a foreclosure-sale notice that could send the River Walk hotel to a county auction in the coming weeks. The filing targets only the hotel portion of the mixed-use tower, leaving the condos stacked above it out of the legal crosshairs. It is a sharp turn for the high-profile property, which opened in 2021 as one of San Antonio’s splashiest new luxury hotels.
As reported by the San Antonio Express-News, lenders Sunrise Realty Trust Holdings I LLC and Southern Realty Trust Inc. recorded a foreclosure-sale notice on Feb. 6 that names Lex Avenue Hotel LLC, the DC Partners entity tied to the Thompson, as the borrower. That notice kicks off the legal process that can end with a public foreclosure auction at the Bexar County courthouse.
Loan History And The Default Notice
Trade publications reported that the property was refinanced in 2024. The Commercial Observer and other outlets detailed an approximately $42 million refinancing in August 2024, with about $27.3 million from Sunrise and $14.7 million from Southern. County records and subsequent local reporting later pegged the recorded debt closer to $44 million. According to the San Antonio Current, the default notice says lenders gave the owner multiple chances to fix the problem, including a settlement offer on Dec. 16. The filing specifically lists only the hotel as collateral and does not include the 59 condo units above.
Owner’s Statement
DC Partners, the developer behind the project, pushed back on the idea that the foreclosure notice signals a failing asset. “This is not a reflection of the quality of the asset or the long-term viability of the project, but rather a convergence of market forces affecting many developers across the country,” the firm said in a statement reported by the San Antonio Express-News. The company instead pointed to elevated interest rates, the challenges of opening during the pandemic and a surge of competing downtown hotel rooms that, in its view, have squeezed the property’s earnings.
Hotel Vs. Residences
The Thompson, which opened in 2021, includes 162 hotel rooms, the restaurant Landrace and rooftop bar The Moon’s Daughters. On top of that sit the Arts Residences, a collection of 59 for-sale condo units. According to the San Antonio Current, the foreclosure notice is narrowly drawn to cover only the hotel component at 115 Lexington Ave., leaving condo owners’ titles outside the filing.
How It Fits Into Downtown’s Hotel Boom
San Antonio’s downtown hotel scene has been on a building binge, especially at the upper-upscale level. Recent additions include the Kimpton Santo, the InterContinental River Walk and the Plaza San Antonio Hotel & Spa, with more rooms still on the way at projects such as the Monarch at Hemisfair. Visit San Antonio and industry reporting note that new supply has at times outstripped demand, while a drop in international and business travel has kept revenue per available room under pressure across downtown. That crowded playing field, paired with more expensive debt, forms the backdrop for the Thompson’s financial stress.
What Happens Next
The foreclosure notice moves the loan toward a potential county sale. Bexar County maintains the official calendar and forms for its monthly foreclosure auctions. If the borrower does not resolve the default, the Thompson hotel could land on the list for a scheduled Bexar County auction in the coming weeks.
The notice sets a legal process in motion, and any auction outcome would follow county sale rules. This story will be updated as additional public filings or new comments from DC Partners or the lenders become available.
