Controversial real estate investors fight for control of downtown Austin's IHOP

Fight to control downtown Austin's IHOP

The future of a popular IHOP in downtown Austin is up in the air. There's a fight for the property. Three prominent local real estate names are fighting for control.

AUSTIN, Texas - The future of a popular IHOP in downtown Austin is up in the air. 

There's a fight for the property. Three prominent local real estate names are fighting for control.

It's been a battle, years in the making, to foreclose the downtown Austin site. The pricey property is just down the street from the tallest tower in the entire state, and the IHOP property is a prime spot for a future development.

The backstory:

The IHOP on east Caesar Chavez may be your go-to spot for pancakes, but the property is highly sought after.

"I've been here in Austin my whole life. So that is a very iconic IHOP," said one Austinite.

Three prominent local real estate names are fighting for control of the property: Nate Paul, Bryan Hardeman and Justin Bayne.

World Class Holdings, Nate Paul's company, owned the 0.8 acre plot of land on east Cesar Chavez that sits nearby numerous high-rises.

The billion dollar holding company owns real estate, financial services and credit businesses, but it also has multiple bankruptcy filings.

"Every time I drive through downtown every year, I mean there are new buildings being put up, which is exciting," said an Austinite.

Last year, Paul pleaded guilty to a federal charge of making false statements to lenders.

Bryan Hardeman is accused of felony arson and burglary charges.

Justin Bayne was arrested for possessing cocaine and conspiring to make or sell it.

Dig deeper:

The Austin Business Journal reports the land was scheduled to go to auction in December, but a bankruptcy declaration by Paul halted that process.

Travis Central Appraisal District values the property at almost $27 million. A figure that's climbed since 2021.

According to the Business Journal, "Cesar Rainey Street LLC," a world-class holding lender, has attempted to foreclose the property numerous times, saying the bankruptcy declaration is a bad faith tactic to delay the process.

Property records still list Justin Bayne, president of Bayne Commercial, as the manager of Cesar Rainey Street. But Cesar Rainey Street LLC is controlled by an investor group led by Bryan Hardeman.

Austinites react

Local perspective:

Some fear the potential loss of IHOP would change the character of the area.

"I mean, there are lots of high rises around here and that's kind of an iconic type of restaurant. We love going there," said Mary Freeman, an IHOP supporter.

However, others are excited about the new possibility.

"It is kind of like, oh, I'm going to drive by and not see that IHOP anymore. But look, if they're innovating, if they are doing everything else that's great, then I'm all for it," said another Austinite.

What's next:

We reached out to IHOP for comment but have not heard back.

FOX 7 also reached out to attorneys for the three real estate moguls involved but have not heard back.