Martin Phipps Surrenders San Antonio Building After $1.2M Fraud Verdict

The 102 Ninth St. building, erected by Phipps in 2014, changed hands in a late‑2022 deal that would later bite. Emet LLC, Phipps’ holding company, sold the 11‑million‑dollar property to CDC Enterprises LP, a firm tied to Daren Connel, a longtime friend. CDC financed $8.25 million of the purchase, while the remaining $2.75 million was recorded as a debt in lieu of a cash down payment – a figure that Phipps claimed was a prepaid‑rent credit for his law firm and Paramour, a rooftop cocktail bar operated by Holy Spirits LLC. CDC disputed the credit interpretation, sparking the first skirmish over the transaction.

On October 9, 2025, a San Antonio jury found that Phipps and his subsidiaries had committed fraud against CDC, awarding the landlord more than $1.2 million in damages and attorneys’ fees. The verdict also rejected the defendants’ counterclaims, leaving CDC’s ownership of the building unchallenged. The jury’s decision hinged on evidence that Phipps had misrepresented the nature of the $2.75 million “pre‑payment” and that he had failed to disclose the debt’s true purpose to the buyer.

The legal battle spiraled into a series of lockouts and eviction hearings. CDC locked out Holy Spirits and Phipps’ law firm in March 2026, citing unpaid rent and maintenance charges; a judge later ruled the March 2 lockout unlawful for lacking proper notice, but the landlord continued to pursue eviction. In September 2026, CDC locked out Paramour for the third time, prompting a trial set for October 9 that day, when both parties finally signed an agreement to relinquish the premises.

The settlement released Phipps and Paramour from the immediate eviction process, but the underlying financial disagreements over the $2.75 million debt remain unsettled. According to the San Antonio Express‑News, the parties agreed to vacate the building within a defined period, but no resolution was reached regarding the disputed credit. As the new owners prepare to re‑lease the space, former bartender Riya Patel says the bar’s rooftop was “a beacon of community” before the lockouts, and she hopes the venue can reopen soon.