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n the heart of Austin's downtown area, two adjacent low-rise buildings are up for sale, offering an exceptional opportunity for developers to create a landmark structure. These buildings, located at 422 Congress Avenue and 101 West Fifth Street, are currently home to Shiner's Saloon and are situated within the Warehouse District. The properties boast central business district zoning, which allows for unrestricted height, according to the Austin Business Journal. Additionally, they are outside of the Capitol View Corridor regulations, providing developers with the freedom to construct a skyscraper without compromising protected sightlines.

    The seller, Karlin Real Estate, has enlisted the services of JLL to market these properties, which were previously owned by Nate Paul's World Class Holdings. Despite the involvement of Karlin Real Estate and its brokers, neither party has commented on the listing. The sale of these properties opens up a wide range of possibilities for future developments, including hotels, office towers, or mixed-use structures.

    The property spans just 0.17 acres, but its floor-area ratio of 8:1 can be extended to an impressive 25:1, providing developers with ample potential to maximize vertical space. In February, Austin-based Merritt Development Group expressed interest in the site, filing a demolition request for the properties with the city of Austin. The group had envisioned constructing a 36-story, $170 million hotel featuring 340 rooms and a 5,500-square-foot restaurant. However, MDG owner and President David Merritt has confirmed that the company is no longer involved with the site.

    Shiner's Saloon, occupying a 13,300-square-foot building on the site, would need to be demolished to make way for new construction. Karlin Real Estate acquired the property in 2021, according to county tax records. Karlin is well-versed in large-scale projects, having successfully transformed the former 3M campus in Northwest Austin into a 1.1-million-square-foot life sciences campus.

    The purchase of these two properties presents an exciting opportunity for developers to create a lasting landmark in downtown Austin, thanks to their central business district zoning and potential for vertical expansion.