Historic Hedrick Building in San Antonio Faces Foreclosure Auction
San Antonio is buzzing with news this week as the Hedrick Building, a cherished historic structure located in downtown, prepares to go up for sale in a foreclosure auction slated for November 5th. This iconic 10-story building has seen its share of ups and downs since it was first erected in 1928. Originally known as the Real Estate Building, it has been a silent witness to the city’s growth and transformation over the decades.
A Tough Road Ahead
The building’s current owner, Bright Lakes Real Estate, seems to be in quite a predicament. An affiliate of Ready Capital Corp. has announced plans to foreclose on both the Hedrick Building and its neighboring Voss Building. This follows a default on a $2.8 million loan taken out back in 2018, which has ballooned to a staggering $15.2 million due to various adjustments. The sides haven’t disclosed the total amount owing by Bright Lakes, but it’s clear that the pressure is mounting.
While many in the community are rooting for the Hedrick Building’s revival, its future remains uncertain. Craig Glendenning, co-managing partner at Bright Lakes, mentioned that discussions are in motion to prevent the foreclosure, though he didn’t provide further specifics on the negotiations. The property was set to hit the auction block last December, however, that sale never materialized – leaving many hopeful for a last-minute resolution.
From Glory Days to Dilapidation
The Hedrick Building has had a rich history. Designed by notable architect Wyatt Hedrick, the building flourished for decades but saw a significant decline in residents, eventually leading to its vacancy in 1986. At one point, city officials even considered demolishing the structure due to complaints of vandalism, broken windows, and other issues. Thankfully, that plan was scrapped, sparing the building from a complete loss.
In 2017, Glendenning and his partners took a heroic stance toward restoration, aiming to breathe new life into the building. They got straight to work, removing the later additions that had hidden its beautiful brick and limestone facade and confronting issues like asbestos removal and pesky pigeon droppings that had accumulated within. Glendenning nostalgically recalled, “Every floor had a large colony of pigeons.”
Shifting Plans Amid Challenges
Initially, the plan was to convert the building into apartments. However, this shifted when the short-term rental company Stay Alfred came knocking, only for it to close operations due to the pandemic, prompting another pivot. Now, the focus is on transforming the Hedrick into an extended-stay hotel boasting 72 rooms, alongside retail spaces and even a title company’s office.
Meanwhile, the Voss Building is also in Glendenning’s sights for further potential development, with dreams of turning it into a vibrant space for restaurants, business suites, and entertainment venues.
A Deeply Valued Asset
According to the Bexar Appraisal District, both the Hedrick and Voss buildings hold a combined value of $7.7 million. However, it’s unclear whether renovations are ongoing, as both structures are currently partially boarded up, a sight that doesn’t inspire much optimism among passersby.
Looking Ahead
As we approach the date of the auction, the fate of the Hedrick Building hangs delicately in the balance. Many in San Antonio are hoping that a solution will emerge, preserving this piece of history while revitalizing the downtown area. With efforts still in progress to save it from foreclosure, the community remains vigilant, eagerly awaiting updates on this iconic building’s journey.
