San Antonio’s Historic CPS Energy Building Set for Foreclosure Auction Amid Legal Troubles and Damage Concerns

San Antonio’s Historic CPS Energy Building Heads to Foreclosure Auction

San Antonio is about to witness the sale of a familiar landmark. The former CPS Energy headquarters, located at 145 Navarro St., is set to be auctioned off due to a foreclosure next month. This iconic ten-story building has had quite a journey, transitioning from a bustling office space to what some had hoped would be an upscale hotel. Unfortunately, it seems that its path has taken a rather tumultuous turn.

The Numbers Behind the Auction

So, what led to this decision? Well, the building’s current owner, 145 Navarro LLC, has defaulted on a loan, leaving them owing more than $17.56 million as stated in a legal complaint from their lender, Riverwalk Reposition Partners LLC. The original loan, taken out in 2023 for $14.35 million, has apparently spiraled into a larger amount due to unpaid payments, interest, and fees that the lender has accumulated over time.

Condition of the Building

While the numbers are staggering, they aren’t the only concern. The building has suffered significant damage, exacerbated by flooding in the basement which led to mold growth. To add to the woes, power has been off since December, meaning that there have been no working pumps to remove standing water and no fire prevention measures in place. There are reports of water damage affecting the floors, walls, and ceilings on multiple levels. It’s a challenging situation for any property, especially one with such a storied past.

A Denial of Accusations

Despite these serious allegations, 145 Navarro LLC denies any wrongdoing. They were purchased as part of a deal that included the Tower Life building parking garage back in 2022 for $19 million. Executives from the affiliated Blueprint Hospitality saw great potential in this location, praising its close proximity to both the River Walk and the Henry B. González Convention Center.

However, challenges continued to crop up. Riverwalk Reposition Partners filed a lawsuit against 145 Navarro and several individuals tied to the company after discovering that the overdue balance had reached alarming levels. Their request to appoint a receiver for the building was a serious escalation in the situation.

Legal Complications

Legal troubles don’t end there, as GrayStreet Partners also filed a lawsuit against 145 Navarro regarding the parking garage. This conflict arose when GrayStreet sought to manage and renovate the garage but encountered resistance from Blueprint Hospitality. It became a tangled web of accusations over whether the two companies were tenants in common, which could imply a sharing of profits.

A Glimpse into the Building’s History

The building itself has a rich history, being constructed way back in 1926, with additional floors added much later. It was once part of a much larger strategy by CPS Energy to sell off surplus properties, which included more than $50 million worth of assets aimed at funding their new headquarters on McCullough Avenue.

Plans had been in motion to transform this historic building into a 243-room hotel named El Portal, which was set to be part of the prestigious Marriott’s Autograph Collection, featuring a restaurant and extensive renovations. Unfortunately, those dreams seem to be fading as the auction date of November 5th draws closer.

The Future of 145 Navarro St.

As San Antonio gears up for this auction, the community is left wondering about the future of this historic site. Will it be revitalized by a new owner? Or will it continue down a path of decline? Only time will tell, but for now, all eyes are on 145 Navarro St..