Two adjacent lowrise properties in the Warehouse District have hit the market, presenting a rare opportunity for a buyer to develop a landmark in downtown Austin.
Currently home to Shiner’s Saloon, the properties at 422 Congress Avenue and 101 West Fifth Street, have central business district zoning, which means no height restrictions, the Austin Business Journal reported. The corner properties are also outside of Capitol View Corridor regulations, allowing a skyscraper to be built without infringing on protected sightlines.
Seller Karlin Real Estate hired JLL to market the property, which once belonged to Nate Paul’s World Class Holdings. Neither Karlin nor its brokers commented on the listing. The sale opens possibilities for a wide range of future developments, such as hotels, office towers or mixed-use structures. The property spans just 0.17 acres, but with a floor-area ratio of 8:1, which can be extended to 25:1, developers have the potential to maximize the vertical space.
Austin-based Merritt Development Group was attached to the site as recently as February, when a demolition request for the properties was filed with the city of Austin. The firm previously envisioned a 36-story, $170 million hotel that would have included 340 rooms and a 5,500-square-foot restaurant. However, MDG owner and President David Merritt confirmed that the company is no longer involved with the site.
Shiner’s Saloon, which occupies a 13,300-square-foot building on the site, would need to be demolished to make way for new construction. Karlin purchased the property in 2021, county tax records show.
Karlin is well versed with large-scale projects, having transformed the former 3M campus in Northwest Austin into a 1.1-million-square-foot life sciences campus.
— Andrew Terrell
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