Historic Hedrick Building in San Antonio Set for Foreclosure Auction Next Month

Historic Hedrick Building in San Antonio Faces Foreclosure Auction

Hey, San Antonio! There’s some big news about one of our downtown gems, the historic Hedrick Building. It’s set to go to a foreclosure auction next month, which has many people in the city talking. This lovely 10-story building has a rich history, and it’s been undergoing a transformation into an extended-stay hotel. However, things have taken a bit of a downturn recently for its current owners.

The Scoop on the Auction

The auction is scheduled for November 5 at the Bexar County courthouse. The whole situation revolves around a foreclosure claim by an affiliate of Ready Capital Corp., which is looking to reclaim the building after the previous owners, a company connected to Bright Lakes Real Estate, defaulted on a hefty loan. Originally valued at $2.8 million when it was borrowed back in 2018, that amount has ballooned to a whopping $15.2 million! Whoa!

Two buildings are up for grabs at this auction: the Hedrick Building and the smaller Voss Building next door. The latter is also part of this unfolding storyline, adding another layer of intrigue to the auction.

A Bit of Background

The Hedrick Building is not just any building; it was originally constructed in 1928 as the Real Estate Building. It has housed some of San Antonio’s most influential developers over the years. Fast forward to 1958, when famed architect and engineer Wyatt Hedrick bought and renovated it. Unfortunately, the building saw a decline in occupancy during the late 1980s and was completely vacant by 1986.

In 2008, there were discussions about demolishing the building due to complaints about its condition. Luckily, the city decided against that, and the restoration journey began. Local businessman B.P. Agrawal ended up purchasing and saving the building from utter dismal fate.

Renovations and New Plans

Fast forward to 2017, and developer Craig Glendenning and his partners got their hands on the building. Their plan? Turn it into a vibrant extended-stay hotel! This transformation included significant renovations – they even stripped away metal cladding that had been hiding its stunning brick and limestone facade. Imagine all that effort in cleaning up, especially with the news of ‘large colonies of pigeons’ on every floor!

While the vision was to convert it into apartments at first, plans shifted when a short-term rental company showed interest, only for that venture to fall through during the pandemic. Now, the spotlight is back on turning it into an extended-stay hotel featuring 72 rooms alongside space for some retail offerings and a title company’s closing office. Sounds exciting, right?

More than Just the Hedrick

The adjacent Voss Building is also part of Glendenning’s plans, with hopes that it could host restaurants, business suites, and maybe even an entertainment venue. However, things have been quiet recently, and both buildings are currently partially boarded up. The buildings have an estimated value of $7.7 million according to the Bexar Appraisal District.

The Road Ahead

As the auction draws near, it remains uncertain what might happen next for these historic buildings. Despite recent setbacks, Glendenning has mentioned he is attempting to negotiate with Ready Capital to avoid foreclosure. We’ll just have to keep our fingers crossed and hope for a positive development.

Let’s keep a close eye on this situation, San Antonio. With our city’s rich history, the Hedrick Building deserves a second chance to thrive. And who knows? Maybe there’s a bright future ahead for both it and the Voss Building.