The building that houses Shiner’s Saloon in Downtown Austin is set for demolition, following recent approval from the city. The structure, a three-story property totaling 13,254 square feet at the intersection of West Fifth Street and Congress Avenue, covers two parcels: 422 Congress Avenue and 101 West Fifth Street. Both are owned by Los Angeles-based Karlin Real Estate, according to a report from the Austin Business Journal. Although the site plan review has been completed, city records indicate that an official demolition permit has not yet been granted.
Karlin Real Estate put the properties up for sale in late 2024 but declined to comment on their future plans. Efforts to reach Shiner’s Saloon management were unsuccessful.
The location holds significant redevelopment potential. A portion of the 422 Congress Avenue parcel falls within a Capitol View Corridor, which enforces height restrictions to maintain views of the Texas Capitol. Most of the land is outside this corridor, allowing for taller construction if designed with staggered heights.
Currently, downtown tower heights in Austin are capped at 350 feet under a temporary measure enacted by the City Council in October. Developers may exceed this limit by participating in the Downtown Density Bonus Program and obtaining council approval.
In previous years, Merritt Development Group had proposed building a $170 million AC by Marriott hotel on the site—a project featuring 36 stories, 340 rooms and a restaurant—but withdrew its proposal in 2024.
The properties have historical relevance as well; they were once part of Nate Paul’s World Class Holdings before being acquired by Karlin Real Estate. Karlin has since redeveloped other assets from World Class Holdings’ portfolio, including transforming Northwest Austin’s former 3M campus into a large life science campus.
Demolition of Shiner’s Saloon represents another change for downtown Austin. The combination of its central location and flexible zoning could make it attractive for major redevelopment projects once ownership or development plans are clarified.
