One of the last undeveloped full city blocks in downtown Austin is set for redevelopment by Hines, a Houston-based real estate developer. Hines has entered into a ground lease agreement with the Texas General Land Office (GLO) for the William P. Hobby Jr. State Office Building site, located at 333 Guadalupe Street, according to the Austin Business Journal.
The GLO had previously announced that it had reached a deal with a major developer but did not disclose the name until now. Hines confirmed its involvement this week, while the state agency has not released specific details about the redevelopment plans for the approximately 2-acre property, which currently includes a vacant 419,000-square-foot state office complex.
The selection of Hines concludes a competitive process that included bids from other major developers such as Related Companies, Endeavor Real Estate Group, DHA Capital, and Urbanspace. The GLO stated that its decision was based on the developers’ experience and financial strength, describing Hines as a “Texas business with a sterling reputation.”
Although the final redevelopment plan has not been made public, previous statements from the state have indicated a preference for a mixed-use project that includes both residential and commercial elements, with an emphasis on workforce housing.
According to a CBRE marketing brochure, the site could be redeveloped up to 1.9 million square feet, with no restrictions on building height or parking requirements. The brochure also suggested that maximizing density-bonus zoning could allow for an 18-story office building, a 20-story hotel with 600 rooms, and 650 residential units in a tower reaching up to 104 stories, along with retail and parking space.
The property is adjacent to The Republic, an 800,000-square-foot office tower that recently opened, highlighting the site’s prominence as a redevelopment opportunity in Austin.
The Hobby Building, which has been vacant and deteriorating, was previously slated for demolition but remains standing. Once cleared, the site could serve as a catalyst for increased density on Austin’s west side, an area where private development is replacing former government properties.
Hines’ acquisition of this project expands its presence in Austin, where it has already developed the T3 Eastside mass-timber office building and several master-planned communities. The company also has plans for a large office project at The Domain after postponing an earlier project intended for IBM.
