The Downtown Austin building that currently houses Shiner’s Saloon is set to be demolished, following recent city approval of related paperwork. The three-story, 13,254-square-foot property sits at the corner of West Fifth Street and Congress Avenue and spans two parcels: 422 Congress Avenue and 101 West Fifth Street. Both are owned by Karlin Real Estate, a company based in Los Angeles.
While the city has completed its site plan review for the property, records indicate that a formal demolition permit has not yet been issued. Karlin Real Estate had listed these properties for sale in late 2024 but declined to comment on future plans. Efforts to reach Shiner’s Saloon management were unsuccessful.
The site offers substantial redevelopment potential. Part of the 422 Congress Avenue parcel falls within a Capitol View Corridor, which restricts building height to preserve views of the Texas Capitol. However, most of the land lies outside this corridor, making it possible for taller buildings with staggered designs.
Currently, Austin City Council has imposed a temporary cap on downtown tower heights at 350 feet, according to a measure passed in October. Developers can surpass this limit if they join the Downtown Density Bonus Program and obtain council approval.
Redevelopment proposals have surfaced before; Merritt Development Group once planned a $170 million AC by Marriott hotel with 36 stories and 340 rooms for the site but withdrew from the project in 2024.
These properties also hold historical importance as former assets of Nate Paul’s World Class Holdings before being acquired by Karlin Real Estate. Since then, Karlin has redeveloped other ex-World Class properties such as transforming the former 3M campus in Northwest Austin into a life science complex totaling about 1.1 million square feet.
The upcoming demolition reflects ongoing changes in Austin’s downtown area. The location’s zoning flexibility and shifting height regulations suggest it could attract major redevelopment efforts, though no definitive plans have been announced by Karlin or any prospective buyer.
