Katz's Deli Broke Ground on West 6th — Here's What the Permit Actually Says

Construction crews broke ground on Katz's Deli's return to West Sixth Street last Tuesday, August 11. According to ATX Things' review of Austin permit records, the city issued a building permit for the exact address five days earlier — the first hard evidence that the long-promised comeback is actually happening, not just being talked about.

For 32 years, Katz's Deli & Bar was the after-midnight institution of downtown Austin: a 24-hour New York-style deli at 618 W. Sixth St. that fed the bar crowd pastrami and matzo ball soup until dawn. Marc Katz opened it in 1979. It closed in 2011. Now his son is bringing it home.

What does the permit actually say?

The City of Austin issued permit 2026-057238 BP on August 10 for 620 W. Sixth St. — the ground-floor commercial space at the corner of Sixth and Rio Grande, one door down from Katz's original address. The filing describes a "change of use from cocktail bar to a full-service restaurant" covering 22,620 square feet, filed under an expedited commercial review by CTC Contractors, LLC.

That space is currently occupied by POP, a champagne lounge and cocktail bar that as of this week still lists regular Wednesday–Sunday hours on its own site. No closing date has been announced publicly, and ATX Things could not independently confirm one — treat POP's listed hours as current until Katz's ownership says otherwise.

The building permit is the second filing on record. Texas Department of Licensing and Regulation records first registered the project on April 3, 2026, with an estimated construction cost of $2.5 million — public confirmation of the number Katz's has been telling reporters.

Who is actually building this, and why does the address matter?

Barry Katz, who turns 55 this month, started working in the West Sixth Street building at age 8, the summer his father opened the original deli. He and his wife, Lisa, built the Katz's brand into a five-location chain around Houston starting in 2000, with a sixth location planned for west Houston. They'd been talking about expanding into Austin or Dallas for years.

Then, in September 2024, the actual building came up for sale — the same one, at auction, out of bankruptcy court. The property had been part of real estate investor Nate Paul's World Class Property portfolio before Paul was charged in federal court with mortgage fraud. Barry and Lisa Katz bought it outright rather than leasing a storefront somewhere else downtown.

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I started working in this very building at 8 years old when my dad opened the first Katz's, so the opportunity to return to the same location is a full-circle, bucket-list moment. The spirit and energy of Katz's is the heart of what makes it special — it's what brings people together, whether they're dining late at night or early in the morning.

ATX Things first covered the purchase and announcement in December 2025, when there was no construction timeline and no permit on file. Last week's groundbreaking is the update: this is no longer a plan, it's an active construction site with a city inspector's file number attached to it. A company spokesperson confirmed the start date to MySA, and Katz's own site has the fuller history of the family's decision to buy back the building.

What was on this corner before, and what's the neighborhood like now?

West Sixth Street between Lavaca and Rio Grande has spent the fifteen years since Katz's closed turning into one of downtown's densest nightlife blocks — cocktail lounges, late-night food, and high-rise residential towers replacing what used to be a scattering of standalone bars and parking lots. A 22,620-square-foot full-service restaurant taking over a cocktail lounge's lease is a genuinely large footprint for this stretch of Sixth, closer in scale to a destination restaurant than a deli counter. It's not the only downtown corner reinventing itself this year — Black Sheep Coffee's debut two blocks away at 6th & Guadalupe and The Driskill Grill's 2026 relaunch are both playing the same "legacy name, new build-out" hand within a few blocks of here.

What locals should know

• Groundbreaking: August 11, 2026 — confirmed by a Katz's spokesperson, backed by a city building permit issued the day before.
• Address: 620 W. Sixth St., one storefront from the original 618 W. Sixth St. location.
• Cost: $2.5 million, per TDLR filings first registered in April 2026.
• Size: 22,620 square feet — a change of use from a cocktail bar, not a from-scratch build.
• Opening target: Late spring 2027, per Katz's ownership. No firm date yet.
• Current tenant: POP champagne lounge, still operating as of this week with no announced close date.

Why did Katz's close in the first place, and is this really the same brand?

Katz's Deli & Bar ran 24 hours a day at 618 W. Sixth St. from 1979 until 2011, when the original Austin location closed. Barry and Lisa Katz took the format to Houston in 2000, building it into a five-restaurant regional chain over the past two decades under the "Katz's Never Kloses" banner — the same round-the-clock promise, the same deli case, the same neon. This isn't a licensing deal or a nostalgia rebrand with new owners; it's the founder's son, using the family's own construction budget, rebuilding on the same block where it started.

Permits are becoming this desk's most reliable way to catch a real Austin restaurant story before the press release — we found a new restaurant quietly taking shape in two connected bungalows on Rainey Street the same way, weeks before any announcement. For a running list of what's actually open and worth the trip right now, downtown or otherwise, see our best restaurants in Austin guide.

FAQ

Is Katz's Deli open in Austin yet? No. Construction started August 11, 2026, and ownership is targeting a late spring 2027 opening — roughly nine months of build-out for a 22,620-square-foot space.

Where exactly is the new Katz's located? 620 W. Sixth St., at Sixth and Rio Grande downtown — next door to the original 618 W. Sixth St. address where Katz's operated from 1979 to 2011.

Is this the same Katz's from Houston? Yes. Barry Katz, son of original owner Marc Katz, co-owns and operates the Houston-area Katz's Never Kloses locations with his wife, Lisa. This is their return to the brand's original city, not a new company using the name.

What's currently in that space? POP, a champagne lounge and cocktail bar, is still listing regular hours on its own website as of this week. No public closing date has been confirmed.

How much is the project costing? $2.5 million, according to Texas Department of Licensing and Regulation filings first registered April 3, 2026 — a figure that matches what Katz's has told reporters directly.

We're watching the city's permit file for the next filing — a certificate of occupancy is the real signal an opening date is close. Follow @austintexasthings for the update when it lands.