A Houston investor is considering building a 15-story upscale boutique hotel at the site of one of Congress Avenue's oldest buildings.

If built, it would be the first new hotel along Congress north of Lady Bird Lake in 44 years , since the Wilbur Clark Crest Hotel – now the Radisson Hotel and Suites – opened in 1966 on a former lumber site at Congress and East Cesar Chavez Street, said Molly Alexander, associate director of the Downtown Austin Alliance, a group representing downtown property and business owners.

Dan Benditz has purchased the structure on the site, a 117-year-old Romanesque-style building at 416 Congress, said Anna Naumann, co-owner of the Elite Property Group, a Spicewood-based residential and commercial real estate firm. Naumann and Rick Schulte of Stanberry Commercial represented Benditz in the purchase. The sellers were members of the James H. Robertson family, which has owned the property since it was built in 1893.

Representatives of the buyers and sellers did not disclose the purchase price. The only tenant, Sky Lounge, operates on a monthly lease, said John Rosato, a principal with Southwest Strategies Group, a local brokerage firm the Robertson family hired to represent it in the sale.

Benditz loves the downtown area, and he thinks that it's just going to continue to thrive, said Naumann, who said she plans to open a downtown branch in the new building. And with Austin growing the way that it's growing and the downtown corridor exploding, (the hotel) will just add to the overall uniqueness and ambiance that downtown has to offer.

Naumann said that although Benditz's plans are focused on a boutique hotel project, if we don't find the right fit, it could potentially be an upscale restaurant and office space.

Under the current vision, the facade of the existing 21,000-square-foot building would be preserved and enhanced, said Dick Clark, owner of Dick Clark Architecture. Clark's firm is designing the proposed 52,000-square-foot hotel, which would include 60 to 70 guest rooms and a bar, restaurant and private dining rooms.

A world-class hip hotel is what it's going to be, Clark said. People have been crying out for a boutique hotel in Austin for years.

Clark said the process of selecting an operator for the hotel is under way.

The proposed hotel will be warm, elegant and contemporary, said Clark, whose restaurant design credits include the local Kenichi, Ruth's Chris Steak House and Apple Annie's eateries.

Clark said the architecture of the existing building is indicative of the very important buildings in urban America at the turn of the century.

The building is of historical significance, although it has no official historic designation, Rosato said.

This building is one of a handful of original structures that remain along Congress Avenue that are more than 100 years old, Rosato said. It is absolutely ideal for a boutique hotel, he said, citing its charming architecture and location.

Plans call for the hotel to have a second-floor bar overlooking Congress, as well as a pool, deck and lounge area. Guest rooms will rise in a slender glass tower that will be supported by steel structure added within the existing building. The building will also have office space.

Plans are subject to receiving required permits from the city. However, Clark said no special variances will be needed. The target opening date is 2012.

You have to do something very special and unique with this type of structure, Clark said.

Our intent is to preserve what's unique and special, particularly the Congress Avenue facade, and add new life in a way that appeals to both Austinites and the sophisticated clientele that frequents downtown.

Several hotel projects, including a second convention center hotel planned for Second and Congress, have been proposed downtown in recent years but were postponed because of the recession and a freeze in the capital markets, which made financing difficult to obtain.

While Austin could certainly use another large convention hotel, the addition of a well-designed boutique hotel would make a welcome addition to the hotel market, said Christian Abbate, a senior consultant with PKF Consulting, a hotel industry consulting firm.

The building was erected in 1893 for James H. Robertson (1853-1912), who was district attorney of Travis County, a district judge, a state legislator and a law partner of former Gov. James Stephen Hogg. Robert Jackson Architects led a renovation of the building in 1984.