Another Bank Shot for the Hotel Icon

Lookie what an investment group headlined by former NBA star Magic Johnson walked away with after Tuesday’s Harris County foreclosure auction: the Hotel Icon — and probably for less than $27 million, since that was the unanswered starting bid for the 135-room boutique hotel. The building at 220 Main St. Downtown is of course no stranger to foreclosure auctions: Randall Davis and some investment partners brought it home from one in 2002, then redressed it as the Icon. And the building began its life as the Union National Bank. LA’s Lowe Enterprises — also the owners of Austin’s Driskill Hotel — bought the hotel from Davis’s group in 2006, but since defaulted on $46 million of debt. That’s what the joint venture of 2 joint ventures — one of them Canyon-Johnson Urban Funds, part owner of the Marq*E Entertainment Center on I-10 — bought up on the rebound, and at a deep discount, this week. The new owners tell the HBJ‘s Jennifer Dawson they’re hoping to turn over operation of the hotel to “a luxury chain such as The Ritz-Carlton Hotel Co. or W Hotels & Resorts.”