A West Sixth Street property previously owned by troubled real estate investor Nate Paul has been taken over by new owners.
Barry and Lisa Katz, known for their successful Katz’s Deli locations in Houston, bought the property at 601 Rio Grande Street during a bankruptcy auction last week, the Austin Business Journal reported.
The sale marks another shift in ownership for Paul, whose company, World Class Holdings, has been under pressure from numerous lawsuits, bankruptcy filings and criminal charges. This latest transaction adds to the list of properties Paul has had to offload as he navigates the turbulent waters of bankruptcy and litigation.
The property’s previous owner, WC 6th and Rio Grande LP — both affiliates of principal owner World Class Holdings — filed for Chapter 11 bankruptcy protection in December. The property housed the Rio nightclub, and it was appraised for tax purposes at $6.4 million. The sale could offer some financial respite to Paul’s struggling business ventures.
Jay Brasher, a spokesperson for the Katzes, confirmed the purchase and mentioned that while specific details remain under wraps, the Katz family plans to lease out the second and third floors of the building. This acquisition hints at the possibility of Katz’s Deli making a return to Austin, much to the excitement of locals who remember the deli’s 24-hour service and classic sandwiches.
Although the involvement of Marc Katz, the original face of Katz’s Deli in Austin, remains uncertain, the purchase brings a sense of nostalgia and hope for a revival of the beloved eatery.
Marc Katz became a well-known personality in Austin during the 1980s and 1990s, and was famous for his yellow Cadillac DeVille convertible and his slogan, “Katz’s never kloses.” He left Austin for New York after the original deli closed in 2011 following a 32-year run.
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