One of the last undeveloped full city blocks in downtown Austin is set for major redevelopment. Hines, a Houston-based real estate developer, has signed a ground lease with the Texas General Land Office (GLO) for the William P. Hobby Jr. State Office Building site at 333 Guadalupe Street, according to the Austin Business Journal.
The GLO had previously indicated in July that it had reached an agreement with a major developer but did not disclose the name until now. Hines confirmed the partnership this week. The state agency has not provided further details about the plans for the approximately 2-acre property, which currently contains a vacant 419,000-square-foot office complex.
The selection of Hines follows a competitive process involving bids from several prominent firms, including 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. The agency described Hines as a “Texas business with a sterling reputation.”
While specific redevelopment plans have not been announced, previous statements from the state have indicated an interest in a mixed-use project that would include both residential and commercial elements, with workforce housing as one component. According to marketing materials from CBRE, the site could be redeveloped by right up to 1.9 million square feet with no maximum height or parking requirements. The materials suggest that density-bonus zoning could allow for an 18-story office building, a 20-story hotel with 600 rooms, and a residential tower with 650 units reaching up to 104 stories, in addition to retail and parking.
The location is adjacent to The Republic, an 800,000-square-foot office tower that recently opened. This makes the Hobby Building site one of the most visible redevelopment opportunities in Austin. The Hobby Building itself has been deteriorating for years and was scheduled for demolition but remains standing. Once demolished, the block could become a focal point for increased density on Austin’s west side, where private development has been replacing former government properties.
For Hines, this project adds to its growing presence in Austin. The company has developed the T3 Eastside mass-timber office building and several master-planned communities in the area. It also has plans for a large office project at The Domain after postponing a previous project for IBM.
“The GLO said its decision weighed developers’ experience and financial strength, calling Hines a ‘Texas business with a sterling reputation.'”
