An investor partnership tied to Tennenbaum Capital Group Real Estate has completed the sale of the Thompson San Antonio hotel, a 162-key luxury property, in a $41 million transaction. Sunrise Realty Trust and Southern Realty Trust, both affiliated with Tennenbaum Capital Group Real Estate, exited their position in the hotel through a deal that transfers the hospitality asset to The Loren Group.
According to reporting cited from Commercial Search, The Loren Group acquired the property using a capital structure that combined cash equity and seller-provided financing. The transaction consisted of $9 million in cash and $32 million in debt issued by Sunrise Realty Trust and Southern Realty Trust. As part of the handoff, the new owner has committed an additional $10 million to upgrade and refresh the hotel, signaling a significant reinvestment into the property following a period of distress.
The sale follows a series of events triggered by the previous owner’s default. Sunrise and Southern Realty assumed control of the hotel from DC Partners after the prior owner defaulted on its debt obligations in February. The asset was subsequently taken through a March auction process. With no competing bidders emerging at the auction, Sunrise Realty Trust and Southern Realty Trust secured ownership with a $40.5 million credit bid, positioning them to later execute the $41 million sale to The Loren Group.
The Thompson San Antonio originally opened in 2020, adding a modern luxury hospitality component to a larger mixed-use project. The hotel occupies a portion of a 20-story tower that also includes a 59-unit condominium component. The condominium residences were not part of The Loren Group’s acquisition and remain separate from the hotel transaction. The tower includes a rooftop restaurant, spa, and gym, features that support the hotel’s luxury positioning within the local market.
Conference and group business are supported by approximately 5,000 square feet of conference facilities within the high-rise. These meeting areas, combined with the building’s amenity package, form part of the value proposition The Loren Group is inheriting and seeking to enhance through its planned $10 million investment in upgrades. While specific details of the renovation program have not been disclosed, the capital plan indicates an intent to reposition and stabilize a hotel that had recently cycled through foreclosure, auction, and a lender-driven ownership period.
The transaction underscores how investors are recapitalizing hospitality assets that encountered distress in recent years, with sellers in this case combining a property sale and debt structure to facilitate a transfer of ownership. The Loren Group’s acquisition, along with its planned improvement program, marks the latest chapter in the asset’s relatively short operating history since its 2020 debut.
