AUSTIN--Cielo Property Group is set to begin a major renovation of a three-story warehouse at 220 S. Congress Ave. in Austin, an unusual 25,000-square-foot building that the group plans to transform into a modern, multi-tenant space suitable for creative office, retail and restaurant users.

“This is a beautiful building with a lot of character right at the gateway of downtown,” Rob Gandy, founding principal of Cielo Property Group, told GlobeSt.com. “Combine that with all the development taking place in the immediate vicinity, and we believe there will be strong demand from a variety of business types once we update the space.”

Built in 1936, the building features exposed brick and metal trusses that create a raw, industrial aesthetic that Cielo plans to preserve.

“This type of space is highly sought-after by businesses and entrepreneurs all over the country, but it's hard to find here because Austin just doesn't have many older industrial buildings with this type of character,” says Bobby Dillard, founding principal at Cielo Property Group. “We feel like whether someone is looking for a 'one-of-a-kind' office space or a 'can't-miss' restaurant location, this building can provide that, all within easy walking distance of downtown and the shopping and restaurants of South Congress.”

Scheduled to begin in early February, the renovation will replace outdated infrastructure and mechanical systems and make the building easier to partition for multiple tenants.

“We have been in love with this building for a long time, like a lot of Austinites,” says Gandy. “We're happy to breathe new life into it and create a project people will be excited about.”

Like the Austin Music Hall, which Cielo purchased last year, 220 South Congress benefits from a number of recent developments nearby that have made its location even more appealing.

Multifamily projects currently under way in the immediate vicinity include The Catherine, a 300-unit luxury apartment tower developed by StreetLights Residential at 214 Barton Springs Road and Broadstone at the Lake, a 220-unit community by Alliance Residential on the former Run-Tex site at 422 Riverside Drive.

The adjacent Hyatt Regency Austin also has undergone major renovations including the addition of a new parking garage and room upgrades throughout the hotel.

Cielo recently engaged Eric DeJernett and Michael Bullard of CBRE to lease the building.

“There didn't used to be much between downtown and South Congress, but that's quickly changing,” DeJernett said. “It's clear that you will continue to see more development in this immediate area, but it's hard to beat a location that offers amazing street presence, a captive residential and hotel clientele, walking distance to the CBD, and all right at the Congress Avenue bridge.”