Ready Capital Takes San Antonio Buildings in Foreclosure

Historic buildings in downtown San Antonio have changed hands after a failed bid to redevelop the property into an extended-stay hotel.

Ready Capital took control of the 42,000-square-foot Hedrick Building and the adjacent 6,800-square-foot Voss Building following a recent foreclosure auction, the San Antonio Business Journal reported. Local firm Bright Lakes Real Estate, led by Craig Glendenning, defaulted on a loan, taken out from Broadmark Realty Capital, that started out as $2.8 million in 2018 and had ballooned to $15.2 million. Broadmark merged with Ready Capital last year

The New York-based lender won the properties, at 601 and 617 North St. Mary’s Street, with a bid of $16.7 million.

The price breaks down to $342 per square foot.

Bright Lakes had been working for years to redevelop the Hedrick Building into apartments before shifting to plans for an extended-stay hotel, but market conditions and financial challenges ultimately halted the project.

Glendenning attempted to raise capital in 2023 by seeking to rezone adjacent land near the Alamodome for a temporary RV park. However, a request to rezone the site was denied by the city council.

Despite neighborhood pushback and the City Council’s rejection of the plan, Glendenning continued to push for alternative uses before defaulting on his 2023 loan.

While the buildings’ historical appeal makes them prime candidates for renovation, any development will have to balance commercial viability and the preservation of the buildings’ heritage.

Securing a redevelopment proposal shouldn’t be difficult for the firm considering the city’s opposition to demolition. Instead, San Antonio officials are prioritizing the redevelopment of historic properties and other underutilized spaces into mixed-use developments, boutique hotels or rental properties.

Houston-based InnJoy Hospitality, for instance, is planning to convert the former Nix Medical Center at 414 Navarro Street into a residential building fronting San Antonio’s River Walk.

Instead of demolishing the historic 200,000-square-foot medical property, the firm plans to invest $10 million transforming the space into new apartments.

— Andrew Terrell