The eatery features deep-fried deviled eggs, fried chicken and waffles among other menu items.
"When I developed Lucy's five years ago, I thought [the Iguana Grill] restaurant would make a great Lucy's," Holmes said. "[It] had such a great vibe—an old house, a spunky spot."
He spoke with the owners of the Iguana Grill about six months ago concerning his interest in the restaurant site should they ever close. The Iguana Grill closed Feb. 15.
Holmes said he plans to expand the restaurant's bar area to increase its lake view, remodel the kitchen to accommodate a large frying area, remodel and enclose a separate structure for special parties, add a playground and continue the Iguana Grill's tradition of live music.
The Lake Travis restaurant is also slated to house an oyster bar and feature brunch on the weekend, he said.
As for the Lucy's mascot sported at Austin's South Congress and Burnet Road locations?
"We will unveil the the pin-up girl for the Lucy's on the Lake restaurant," Holmes said. "All I know is she will be blond."