Posted Nov 29, 2023, 7:27 AM
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Registered User
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Join Date: Dec 2011
Posts: 919
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Uh-oh.
https://www.expressnews.com/business...e-18518232.php
Quote:
A lender is moving to foreclose on the historic Hedrick Building in downtown San Antonio, which is under renovation for conversion from offices to an extended-stay hotel.
A limited liability company affiliated with Bright Lakes Real Estate, which is working on the conversion, has defaulted on a loan Broadmark Realty Capital Inc. made in 2018, the lender said.
The original loan amount of $2.8 million was later increased to $15.2 million, according to real estate records. It’s unclear how much Bright Lakes owes.
The 10-story building at North St. Mary’s and East Martin streets and a smaller building adjacent to it are scheduled to be sold at a foreclosure auction next week. Craig Glendenning, co-managing partner at Bright Lakes, said he and his business partners are working to keep that from happening.
“We’re doing everything we can to keep it from going to foreclosure and plan on finishing the project,” he said. “We’re not going to let it go to foreclosure … it’s a very difficult market right now, as we all know.”
The original loan was made by a company affiliated with Ready Capital Corp., which merged with Broadmark earlier this year. Ready Capital did not immediately respond to an inquiry.
The building opened with fanfare in 1928 as the Real Estate Building. Some of San Antonio’s most prominent developers set up offices there.
Designed by Adams and Adams Architects, the building is made of reinforced concrete, brick, stone and terra cotta. Adams and Adams was involved in development of Laurel Heights, a suburb that’s now part of Monte Vista.
Fort Worth architect and engineer Wyatt Hedrick bought the building in 1958 and remodeled it in 1963. Occupancy fell in the ’80s and the building was empty by 1986. In 1993, the Resolution Trust Corp. liquidated the assets of Gill Savings Association and sold the building to local businessman B.P. Agrawal.
The city’s code compliance division sought to have it razed in 2008 after receiving complaints about its broken windows and graffiti-riddled exterior but later withdrew the request.
Glendenning and his business partners have been renovating the building for several years with the help of historic tax credits. Among the changes Glendenning made was removing red-and-white metal cladding that had ensconced the exterior’s ornate brick and limestone facade.
He originally planned to turn the building into apartments until he received an offer from short-term rental company Stay Alfred. But Stay Alfred folded during the pandemic, and Glendenning instead decided to make it an extended-stay hotel with 72 rooms along with space for retail and a title company’s closing office.
Glendenning also plans to renovate the adjacent Voss building. Restaurants, suites for businesses and an entertainment venue are some of the uses that have been discussed.
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