Austin's old Megabus stop at 1500 San Jacinto Blvd — vacant since the company killed its Texas routes in August 2024 — has a real building permit as of this month for its next life: Two Step Taqueria, a tequila-bar taco spot that has, until now, only existed as a delivery kitchen. According to ATX Things analysis of City of Austin permit filings, the change-of-use permit for the 2,131-square-foot building was issued September 3.

That single filing answers a question that's been sitting unresolved in the public record for more than a year: a Texas Department of Licensing and Regulation registration filed back in June 2025 named the address and the concept, estimated the project at $750,000, and penciled in a June 2026 completion date that came and went with no restaurant. The new City of Austin building permit — "Addition and Change of Use from Transportation Terminal to Restaurant," filed by Podular Construction — is the first sign since then that the project is actually moving again.

What's actually happening at 1500 San Jacinto

The one-story building at 1500 San Jacinto Blvd, a block off MLK Jr. Blvd on the northeast edge of downtown, opened as a Megabus stop in early 2017 — an indoor waiting room built for up to 80 people, with WiFi and its own bathrooms, a step up from the curbside stops the company had used before. It didn't last as a hub for long: Megabus shut down every route in Texas in August 2024 after its parent company, Coach USA, filed for bankruptcy, and the terminal has sat empty since.

1500 San Jacinto Blvd, Austin, TX 78701

Cyclists and pedestrians on San Jacinto Boulevard near the UT Austin campus, the same corridor as the former Megabus terminal

Property records list the owner as 1500 San Jacinto LLC. The architecture firm of record is Magic Architecture, and the general contractor on the newly issued building permit is Podular Construction. The scope, per both the TDLR filing and the city permit: renovate the existing one-story building into a restaurant, with a kitchen addition.

Note

Two separate government filings are in play here, and they measure different things. The TDLR registration (filed June 2025) tracks accessibility review — it doesn't confirm construction has started. The City of Austin building permit issued September 3 is the one that actually authorizes the physical change-of-use work. Its arrival, more than a year after the original TDLR filing and three months past that filing's own estimated completion date, is the clearest evidence yet that the project is under active construction rather than stalled on paper.

Who's behind it, and what they're actually serving

Two Step Taqueria is chef Scott Castell's concept, and right now it exists only as what the company calls a "Ghostline Kitchen" — a delivery-and-pickup operation run out of a shared commercial kitchen space at 3400 Comsouth Dr, with no dining room, ordered entirely online. The menu leans into scratch cooking: artisanal tortillas, house-made salsas, and meats the company says are sourced for flavor rather than cost, built into tacos, burritos, and bowls.

1500 San Jacinto would be Two Step's first real restaurant. The company's own site describes the concept as "a chef-driven taqueria inspired by Texas, featuring natural meats and artisanal tortillas with a tequila-focused bar serving traditional and craft cocktails, Texas and Mexican beers, and wine in downtown Austin" — a line that's been live since a local business outlet, WhatNow, first flagged the filing back in June 2025. That's a meaningfully bigger swing than a ghost kitchen — a full bar program, in a building the company will actually control, on a street that feeds directly into the UT campus and the Capitol complex.

Breakfast tacos and a tequila cocktail on a wooden table, the style of dish Two Step Taqueria plans to serve

Pro Tip

The location puts Two Step Taqueria within a few blocks of Waterloo Park's Moody Amphitheater, which has a stacked concert calendar running most nights through September — a pre-show taco stop is an obvious use case once the doors open.

No opening date has been announced by the company, and this run found none in any public filing. The safest read of the record: construction authorization is real and current as of this month; a firm open date is not yet public anywhere, including on Two Step's own channels.

What locals should know

  • It's not open. As of this week, 1500 San Jacinto is a construction site, not a restaurant. The only place to order Two Step Taqueria food right now is online, for pickup or delivery from the Ghostline Kitchen at 3400 Comsouth Dr.
  • The scope is a full renovation, not a light refresh — the filings describe converting the entire former transit building, plus a kitchen addition, which is consistent with a from-scratch buildout of both a kitchen and a bar.
  • The address has real bones for foot traffic. It sits on San Jacinto Blvd between the Capitol grounds and the UT campus, roughly the same corridor as Waterloo Park and Moody Amphitheater.
  • This is the third Austin restaurant story this quarter to surface first in permit filings rather than a company announcement — the same pattern played out with a new restaurant coming to 78 Rainey in August and Katz's Deli breaking ground on West 6th before that.
Heads Up

Nothing here is a confirmed opening date. Treat any third-party "coming soon" listing for this address with the same caution — the only things independently verified for this piece are the June 2025 TDLR filing, the September 3, 2026 City of Austin building permit, and Two Step Taqueria's own site copy.

How this fits Austin's broader building boom

This isn't an isolated data point. ATX Things' own September Development Report — pulled from the same TDLR and city permit data used for this story — found the Austin metro registered $793.1 million across 223 projects in the 30 days leading up to September 2, led by a Samsung supplier's Taylor chemical plant rather than anything downtown. A single restaurant buildout won't move that needle, but it's a reminder that the same filings tracking billion-dollar industrial projects also catch a former bus terminal turning into a taco bar — first, before any press release does. The full permit history for this address is public on Zabalist's project page, our sister platform for Central Texas development records.

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Building Activity
Permits in 78701

Daily permit data from City of Austin

FAQ

Is Two Step Taqueria open yet? No. As of this week the 1500 San Jacinto building is under active construction per a City of Austin permit issued September 3, 2026. The only current way to order from Two Step Taqueria is through its Ghostline Kitchen at 3400 Comsouth Dr.

What was at 1500 San Jacinto before? A Megabus terminal, open from early 2017 until Megabus ended all Texas bus routes in August 2024 following its parent company Coach USA's bankruptcy filing.

Who owns the building? Property and permit records list 1500 San Jacinto LLC as the owner, with Magic Architecture as the design firm and Podular Construction as the general contractor on the September 2026 building permit.

When will it open? No opening date has been announced publicly. The original TDLR filing estimated June 2026 completion; that date has passed without an opening, and the new building permit doesn't include a completion timeline.

What kind of food will it serve? Chef Scott Castell's Texas-forward taco concept — artisanal tortillas, scratch salsas, and a tequila-focused bar with traditional and craft cocktails, Texas and Mexican beers, and wine, according to the company's own site.

We're watching the TDLR and city permit feeds for the next filing on this address — a certificate of occupancy or a final inspection sign-off would be the real "it's open" signal. In the meantime, our downtown food and drink guide covers what's already open within walking distance. Follow @austintexasthings for the update when it lands.