For 43 years, Waterloo Records has been a staple of music-loving Austin, with most of that time spent slinging vinyl and hosting in-store performances at the corner of Sixth Street and North Lamar. Now, it’s leaving that longtime location for a new space just seven blocks north, and owner John Kunz is taking a step back to bring in two new partners—Caren Kelleher and Trey Watson. Both fit naturally as stewards of the shop: The former founded a vinyl record pressing plant, Gold Rush, and the latter is an investor in Armadillo Records (the physical media arm of Armadillo World Headquarters).

“Waterloo is so renowned internationally with the music community, and certainly here in Austin, that we see a lot of potential to make this a destination for music fans,” Kelleher says.

On a blistering day in July, the store’s new owners stand in the soon-to-be home of the capital city’s beloved record retailer and gaze around the construction zone that will be buzzing with patrons come the grand opening on Aug. 30. Though the new site is still a work in progress as of this summer, the pair can already see their vision taking form—and they’ve got big plans.

Featuring a state-of-the-art studio with spatial audio mixing and mastering technology, a podcasting studio, a larger stage for in-store performances, and a small cafe serving coffee and beer, the shop will serve as a multifaceted creative hub. Waterloo will also be the only place in the world that makes 24-karat-gold-plated albums.

“It looks like a huge R2-D2 unit,” Watson says. “The lid hydraulically lifts open, and you put the vinyl on a spindle.” The machine can also plate an album with platinum or any other precious metal. Via a partnership with Gold Rush, Waterloo can produce the official RIAA-certified records given to artists to commemorate sales milestones. But any fan can have an uncertified gold record made for an album of their choice.

In short, Austin’s iconic record store isn’t just moving buildings—it’s being reimagined for the modern age. And it’s also better positioned to weather shifts in cultural, economic, and technological trends.

After nearly half a century stewarding a record store from vinyl to 8-tracks and cassettes to CDs and back to vinyl, Kunz deserves a medal of honor, or at least a relaxing retirement. But he’ll stay on with an ability to work as much or little as he wants to—a dream scenario, according to Kunz.

Luckily, he gets to transfer a cherished homegrown business into the hands of people who care deeply. Kelleher lives just around the corner and has been personal friends with Kunz for years. As she sees it, running Waterloo is a logical and emotional extension of her work with Gold Rush since 2018. “For me, the common thread has always been helping independent artists succeed,” she says.