Tennenbaum Capital Group Real Estate’s Sunrise Realty Trust and Southern Realty Trust sold the 162-key luxury Thompson San Antonio hotel for $41 million.

Commercial Search reports that The Loren Group acquired the previously distressed asset in a transaction that included $9 million in cash and $32 million in debt issued by SUNS and SRT, the sellers. The new ownership is spending $10 million on upgrades to the hotel.

Sunrise and Southern Realty took over the hotel from DC Partners, who defaulted on the debt in February. Following a March auction where no other competitors emerged, SUNS and SRT took ownership with a $40.5 million bid.

The hotel debuted in 2020 as part of a mixed-use tower that included a 59-unit condominium property, a portion not included in The Loren Group’s acquisition. The 20-story high-rise features a rooftop restaurant, spa, gym and 5,000 square feet of conference facilities.

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