San Antonio, TX – May 21, 2012 – BC Lynd Hospitality, a growing hospitality investment and management firm, has made its first major acquisition since it was founded earlier this year. The company, a joint venture between Lynd and BC Commercial Partners, LLC, has purchased the historic St. Anthony Hotel located in downtown San Antonio, Texas.
BC Lynd CEO Brandon Raney said the joint venture is planning a $24 million renovation to restore the 103-year-old hotel and maintain the extraordinary architecture of the building, which is listed as a National Historic Landmark.
The hotel, located at 300 East Travis Street in downtown San Antonio, has the opportunity to serve business travelers, leisure travelers and local residents alike.
“It will become the premier destination for social functions, wedding receptions, and other significant events seeking exceptional service and a meaningful experience,” Raney added. Following an extensive renovation, the St. Anthony Hotel will be repositioned with a new hotel brand affiliation, new décor, updated meeting and function spaces, new restaurant, a rooftop bar and numerous other hotel amenities.
IBC Bank provided debt financing for the acquisition and renovation of the hotel.
“IBC has always been a strong supporter of downtown San Antonio as a major property owner, and also by providing financing for projects like this,” said bank executive Tom Travis. “We are delighted to have helped our good customer with this financing and look forward to seeing the transformation of the St. Anthony into an even grander facility. IBC remains committed to its customers and communities and looks forward to helping in any way we can.”
BC Lynd purchased the hotel for an undisclosed amount from the special servicing agency Berkadia after a competitive bidding process.
“We work tirelessly to gain an unparalleled understanding of our potential investments, and I believe we were selected as the buyer of this asset because of our comprehensive due diligence process and superior knowledge of the property,” said Raney. “We also have the unique ability to close real estate transactions in an efficient manner, with minimal issues arising.” This transaction signifies the beginning of what the group considers to be the best acquisition environment in recent years. “We have more capital at our disposal and are currently evaluating several other opportunities,” Raney added.
“We found a great opportunity at a perfect time,” said BC Lynd Chief Investment Officer Clyde Johnson IV. “It’s an elite property that has hosted business leaders, presidents, Hollywood stars and British royalty over its storied history. Our plan is to restore it to its former glory and make it the ‘Queen of San Antonio’ once again. This type of project plays right to our strength of restoring historic hotels.”
BC Lynd’s joint venture partner, Lynd, of San Antonio, Texas, has invested heavily in the distressed real estate market. This acquisition marks the first significant investment in San Antonio that the firm will focus on.
“Lynd is excited to be working on such a high profile project in our hometown,” said A. David Lynd, Lynd COO. “We believe in the continued revitalization of downtown and Mayor Julián Castro’s ‘Decade of Downtown’ initiative. The St. Anthony Hotel is a distinctive property offering many opportunities for us to do something special, and transform this property into something never before experienced in downtown San Antonio.”
In the past two years alone, the Lynd Company purchased the unpaid principal balances on a pool of commercial properties valued at $62 million which fueled the growth of a new commercial division called Lynd Commercial. Lynd then purchased $350 million worth of distressed multifamily properties, leading to the creation of a student housing division called Lynd Student Living. Hoping to achieve that same success in the hospitality industry, Lynd teamed up with Raney and Johnson of BC Commercial Partners who, combined, have decades of experience in the development, investment, management and selling of hotel properties. Raney and Johnson have been involved in the development and sale of more than $450 million in hotel, mixed-use and residential projects, with the St. Anthony Hotel being the first acquisition under the BC Lynd brand.
“After working with BC principals on unrelated business, we came to the conclusion that our talents combined make a great fit in the hotel space,” said Lynd CEO Michael J. Lynd, Jr. “We are excited that our first project is in our backyard, and that not only carries historic significance, but is also another key piece in transforming downtown San Antonio into an exciting destination.”
The St. Anthony Hotel is the first of a series of planned acquisitions for BC Lynd. The company is using internal funding sources to turn around properties that suffer from deferred maintenance as well as properties requiring modernization and improved management practices. BC Lynd will also manage investment properties for investors seeking professional management with unparalleled capabilities for modernizing facilities and operations. The firm will also develop and manage hotels for clients.
About BC Lynd Hospitality, LLC
Based in San Antonio, Texas, BC Lynd Hospitality, LLC, is a joint venture between BC Commercial Partners, LLC and Lynd focused on the acquisition and management of hotel properties in the select service, extended stay and full service categories located in the Top 50 U.S. Markets. For more information, visit www.bclynd.com.
About IBC Bank
IBC was founded in 1966 to meet the needs of small businesses in Laredo, Texas. Today, it serves as the flagship bank of International Bancshares Corporation. Since its opening, IBC has grown from less than $1 million in assets to more than $11.8 billion, making it one of Texas’ largest holding companies. IBC now serves 88 communities throughout Texas and Oklahoma with 217 branches and more than 370 ATMs and provides full service banking seven days a week.