Crews gut historic site for new eatery

AUSTIN (KXAN) - Downtown developers are shedding Austin's past to make way for the new. The old Spaghetti Warehouse building at 4th Street and Colorado Street is the latest change, as crews have gutted the structure to make room for an upscale eatery called the Capital Grille .

The historic venue is a staple in Austin's Warehouse District. Built in 1902, it was once a grocery warehouse and - during prohibition - a brothel.

"I don't think it's necessarily the best bet to go in and tear down and create new,” one woman walking by the site said.

"You know what?” asked her friend. “Sometimes you've got to do what you've got to do these days. If it wasn't working before, you've got to make some changes."

Spaghetti Warehouse moved into this location in 1975. Last year - after 36 years in business - it closed.

• S lideshow of Spaghetti Warehouse and the city's historic Warehouse District.

The first tenant in its renovated state will be the Capital Grille, a steak and seafood restaurant owned by the same company as places like the Olive Garden and Red Lobster.

The real estate investment firm behind the construction - World Class Capital Group - has been buying up downtown property for development like this over the past two years:

• Katz's Deli at 6th Street and Rio Grande Street
• Hard Rock Café at 6th Street and San Jacinto Boulevard
• La Zona Rosa at 4th Street and Rio Grande Street
• Spaghetti Warehouse at 4th Street and Colorado Street
• Empty retail space at 3rd Street and Trinity Street
• One-acre tract next to Four Seasons at 1st Street and Trinity Street (will become a high-rise, multi-family development)

Colin Pope, editor of the Austin Business Journal , said the firm has been aggressive in its purchases and will likely have more projects in the near future.

"Here in Austin, they've got some lake-front property over by Lake Travis that they're looking at turning dirt on,” said Pope. “Then over on the east side over near the F1 track, they were one of the first investment firms to buy land out there on speculation thinking that it's going to be worth a lot more than it is now."

With so much change, some history lovers worry about losing Austin's charm. But with Spaghetti Warehouse's facade still intact, it leaves some hope of compromise between the past and the present.

"It's a great way to keep some of the history of the city and move on with a newer feel,” said one woman as she watched construction crews from across the street.