Two prominent Gay Street properties are back on the market for a combined $8.4 million after changing owners three times since 2020, most recently in July.
Knoxville-based PWA Properties has listed the undeveloped lot at 308 S. Gay St. for $3.7 million and the neighboring Friedman's Loft building for $4.7 million, though the company is open to a deal that includes both properties.
PWA Properties, in a Sept. 29 news release, said the properties could accommodate commercial, residential and hospitality uses, including a mixed-use development on the 0.217-acre lot.
Sevierville-based Compass Ventures, which owns restaurants and residential developments in the Smokies, announced in August it had acquired the building and the lot through a foreclosure
sale July 31. Patrick King, property manager for Compass, told Knox News at the time the company planned to "take good care" of the properties.
The Knox County Register of Deeds on Sept. 29 had not yet received a record of sale showing how much Compass paid.
How the Gay Street property has changed hands in recent years
Back on the market, the three-level Friedman's Loft building at 304 S. Gay St. has a dentist's office on the first floor and has operated as an Airbnb. Spanning 10,000 square feet, the building also features a speakeasy, spa, sauna and rooftop overlooking downtown.
The building was home to Friedman's Jewelers from the 1940s through the 1990s and featured an iconic clock facing Gay Street. The 308 S. Gay St. property is one of Gay Street's most notable gaps.
"One reflects the character and history already woven into the city," PWA said in the release, "while the other offers a blank canvas for what could come next."
Compass Ventures acquired the properties from Ephant Group, which in 2022 purchased the vacant lot for $2.4 million and announced plans for a boutique hotel. Property records show Ephant acquired 304 S. Gay St. for $4.9 million that same year.
The previous owner, Knoxville entrepreneur and philanthropist Josh Smith, acquired the properties in 2020 for a combined $3.75 million, with plans for a mixed-use building on the vacant lot.
The latest listings come amid a wave of recent real estate deals and business announcements on Gay Street. The people behind Brother Wolf are planning a grab-and-go gourmet market at 418 S. Gay St., while the restaurant group behind Earl's is opening a rotisserie chicken restaurant in the former Babalu space at 412 S. Gay St.
Earlier this month, Knoxville-based retailer Altar'd State purchased the Kress Building at 419 S. Gay St. for $6 million.
Sophia Tiedge is the growth and transformation reporter for Knox News. Email: sophia.tiedge@knoxnews.com
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This article originally appeared on Knoxville News Sentinel: Gay Street properties hit the market for $8.4M two months after latest sale
