A popular downtown Austin icon will have to find a new home. For months, Las Manitas has negotiated with Marriott developers to remain at its home on 2nd Street and Congress Avenue.

KVUE News

Now the restaurant has agreed to move.

The restaurant has fought, along with its neighbor Escuelita del Alma, to remain in their existing spaces. Now both are looking for a new home.

"It sucks that big business now finally pushed them out," said Sage Wilson, Austinite.

Las Manitas has called the site at 2nd and Congress Avenue home for 25 years. At Escuelita del Alma next door, the daycare's operator, Dina Flores is also searching for a new home.

"We have to move. We've pretty much been told we can't stay here," Flores said. "We are in the process of finding a commercial site."

The daycare is hoping to find something close to downtown, but since the state places certain requirements on daycares in terms of ground level space and outdoor space, the school may be priced out by the rich real estate.

"The prices I'm encountering are just so exorbitant in Austin, it's going to make it hard," Flores said.

While the search will continue for the daycare, Las Manitas has more options. It's move could be a short one.

The restaurant actually owns a building on the same block, which currently houses a non-profit. That could be a viable option. Las Manitas also has other options downtown.

The daycare is looking at property in East Austin and South Austin as well as downtown.

It's hired a local commercial realtor, Southwest Strategies, and is actively seeking any option it can find.