The Downtown Austin building that houses Shiner’s Saloon is slated for demolition, according to paperwork approved by the city last week.
The property, with a three‑story, 13,254‑square‑foot building at the corner of West Fifth Street and Congress Avenue spans two parcels at 422 Congress Avenue and 101 West Fifth Street, both owned by Los Angeles‑based Karlin Real Estate, the Austin Business Journal reported. . While the site plan review has been completed, city records show that a formal demolition permit has not yet been issued.
Karlin, which listed the properties for sale in late 2024, declined to comment, and Shiner’s Saloon management could not be reached by the Business Journal.
The site’s redevelopment potential is significant, though Karlin has not disclosed future plans. A portion of the 422 Congress Avenue property lies within a Capitol View Corridor, which imposes height restrictions to preserve views of the Texas Capitol. However, most of the land is outside the corridor, allowing for taller construction with a staggered design.
Currently, the Austin City Council has capped downtown tower heights at 350 feet under a temporary measure passed in October. Developers can exceed this limit if they participate in the Downtown Density Bonus Program and secure city council approval.
The site has long been eyed for redevelopment. Merritt Development Group once proposed a $170 million, 36‑story AC by Marriott hotel with 340 rooms and a 5,500‑square‑foot restaurant, but withdrew from the project in 2024.
The properties also carry historical significance. They were part of Nate Paul’s World Class Holdings portfolio before Karlin acquired them. Karlin has since redeveloped other World Class properties, notably transforming the former 3M campus in Northwest Austin into a 1.1 million‑square‑foot life science campus.
The demolition marks the latest step in reshaping Austin’s downtown landscape. With a prime location, flexible zoning potential and evolving height regulations, the site could become a major redevelopment project, though its future remains uncertain until Karlin or a new owner reveals concrete plans.
— Joel Russell