A commercial property on Hancock Drive is getting a new life as a 12-tenant restaurant and retail market. The 1.47-acre site at 2825 Hancock Dr., long known as Lantern Lane Center, has been purchased by Ivy Companies and 35 South Capital, who plan to convert the existing structure into a development called Highland Market.
According to austin.culturemap.com, Highland Market will include roughly 18,900 square feet of retail space and is expected to house retail stores, local restaurants, and other service businesses. The site sits between the Rosedale and Allandale neighborhoods and is accessible from MoPac Expressway, according to the same report. Before the sale, the property had sat on the market for the first time in over 50 years, with Colliers Austin marketing its 19,707 square feet of space across 13 suites when it listed the parcel on July 31, 2024.
Zoning Fight Cleared the Way
The property was the subject of a proposed May 2026 rezoning hearing, with city planning documents outlining recommendations concerning the site. The site falls within the Shoal Creek Watershed, according to those same city records. A planning document lists proposed restrictions on higher-impact uses, including automotive repair, pawn shops, medical offices larger than 5,000 square feet, and service stations.
The rezoning did not go through without pushback. City meeting records show that surrounding property owners filed a valid petition opposing the commercial rezoning during the May 2026 proceedings, a move that raises the required City Council voting threshold for approval. Roger Plourde said the neighborhood's character was shaped by its residents and that Ivy wants to add to that character without changing it, according to austin.culturemap.com.
From Classrooms to Cafes
Before its redevelopment, the building housed longtime neighborhood educational tenants, including The Children's School, according to property records reviewed by Trulia. The listing platform includes a review about a building's condition. Directly across Hancock Drive sits Austin Memorial Park Cemetery, an 80-plus-acre municipal burial ground established in 1927 and purchased by the City of Austin in 1941 that now holds more than 27,000 interments, according to the Save Austin's Cemeteries. Author James A. Michener and University of Texas golf coach Harvey Penick are among the notable figures buried there, per the same department.
The property is listed on LoopNet. The site sits near the Rosedale and Allandale neighborhoods. Once complete, Highland Market is expected to become part of a walkable community blending dining destinations with neighborhood services, according to the Ivy release cited by austin.culturemap.com. Nearby restaurants within a mile of the site include Yamas Greek Restaurant, Fonda San Miguel, Carve American Grille, and Épicerie, per the same report.
Design Firm Behind Other Austin Overhauls
Architecture firm Firmah, which favors industrial design styles, will handle Highland Market's renovation. The firm's other Austin projects include the Canopy Hotel and 5th & Walsh, a five-story mixed-use development in Clarksville set to become the future headquarters for Endeavor Real Estate Group, as Hoodline previously reported. That Clarksville project is replacing low-slung structures west of downtown Austin.
Highland Market appears to be Ivy Companies' only other apparent Austin retail investment beyond Casis Village, a shopping center in Tarrytown anchored by Randall's and also home to tenants like Zed's and Estilo. Ivy Companies and 35 South Capital co-owned Casis Village before completing its sale to a private family office in August 2026, with the center 92% leased at the time of sale, according to JLL.
A Tight Retail Market Fuels Demand
The redevelopment lands amid a broader squeeze on Austin retail space. JLL reported in August 2026 that the city's retail market holds a 97% occupancy rate across 123 million square feet, but provides just 44 square feet per capita — roughly 20% below the Sunbelt average — a structural undersupply that the firm attributes to rapid population and job growth intensifying competition for infill sites. That scarcity helps explain why a half-century-old office parcel near two of Central Austin's most established neighborhoods is drawing fresh investment for a 12-tenant food and retail concept.
