AMLI is rumored to have signed a lease with an operator for a 3-4 screen movie theater to take the space above Malaga and Z Pizza. We’re told the theater will serve food and drinks (including liquor), and the menu would consist of items from restaurants located in the 2nd Street district. It’s clear from the photo above that the space isn’t very deep, and it’s possible that part of the venue would extend over the sidewalk.
We don’t know who the operator is, but we do know it’s not local favorite Alamo Drafthouse Cinemas. The addition of a destination venue like this, and the wrap-up of the W-Hotel’s construction will be a breath of fresh air for neighboring retail on the 400 block of W 2nd Street.
Downtown Austin’s 2nd Street District retailers have been hit hard with the economic downturn, and the venues on 400 block have struggled to keep up with the foot traffic found just two blocks over where Jos, Estilo, and DWR are located. Many pedestrians end up not walking beyond the W Hotel construction site.