Sutton Company’s $300M Mixed-Use Redevelopment of Hill’s Cafe

The Sutton Company is set to revive the former Hill’s Cafe site on South Congress Avenue into a $300 million mixed-use development.

The Austin-based firm, partnering with Dallas-based KOA Partners and New York City’s Atalaya Capital, plans to redevelop the 15-acre site at 4700 South Congress, the Austin American Statesman reported. Plans call for two hotels, hundreds of apartment units, retail, office space and renovation of the restaurant and outdoor music venue, which closed in 2018.

The site near St. Elmo is part of an evolving urban district that is transforming South Austin into one of the city’s hottest submarkets.

Construction on the apartment units could begin as early as next year, with the first expected to be ready for occupancy 18 months later, said Mac Pike, chairman of the Sutton Company.

“If all goes as planned, the first phase will include 444 apartment units on the back half of the property, utilizing the large greenbelt space,” he said.

The second phase will bring a 150-key hotel and the return of Hill’s Cafe, which will serve as the centerpiece of the project. The restaurant will be paired with an indoor/outdoor entertainment venue, offering a nod to its rich history as a community gathering spot.

There are also plans for a 130-key hotel and open spaces for hotel guests and the public, as well as a 100,000-square-foot office building facing South Congress.

The site’s transformation comes as the St. Elmo Arts District, just across South Congress, is taking shape. The once-industrial neighborhood is now home to a condo development, apartments, restaurants and entertainment venues.

SomeraRoad, headquartered in Nashville and New York, plans to build a 230-unit apartment complex next to the St. Elmo development. Intracorp, a major player in Austin’s condo game, recently got approval from Austin City Council to rezone five lots at 2105 South Congress Avenue, paving the way for redevelopment of several low-rise commercial buildings into a seven-story condo building,

Intracorp Texas President Brad Stein described the district as “one of the most dynamic pockets of development in all of Texas right now.”