A property on West Sixth Street previously owned by troubled real estate investor Nate Paul has been taken over by new owners.
Barry and Lisa Katz, known for their successful Katz’s Deli locations in Houston, purchased the property at 601 Rio Grande Street during a bankruptcy auction last week, the Austin Business Journal reported.
The sale marks another change in ownership for Paul, whose company, World Class Holdings, has been under pressure from numerous lawsuits, bankruptcy filings and criminal charges. This latest transaction adds to the list of properties Paul has had to sell as he navigates the turbulent waters of bankruptcy and litigation.
The property’s previous owner, WC 6th and Rio Grande LP – both subsidiaries of primary owner World Class Holdings – filed for Chapter 11 bankruptcy in December. The property housed the Rio nightclub and was valued at $6.4 million for tax purposes. The sale could provide financial relief for Paul’s ailing business ventures.
Jay Brasher, a spokesperson for the Katzes, confirmed the purchase and mentioned that while the Katz family is keeping details under wraps, they plan to lease the second and third floors of the building. This purchase suggests that Katz’s Deli may be returning to Austin, which is something that will please locals who remember the deli’s 24-hour service and classic sandwiches.
Although the involvement of Marc Katz, the original face of Katz’s Deli in Austin, remains uncertain, the purchase evokes a sense of nostalgia and hope for a revival of the popular eatery.
Marc Katz became a well-known figure in Austin in the 1980s and 1990s, famous for his yellow Cadillac DeVille convertible and his slogan “Katz’s never kloses.” He left Austin for New York after the original deli closed in 2011 after 32 years.
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— Andrew Terrell
