Historic Emporium Building in Knoxville Sells for $24.75 Million

Categories: Business NewsNewsReal Estate & Properties

News Summary

The iconic Emporium Building in Knoxville has been sold for $24.75 million to Boghani Properties. Originally a furniture store, the building has evolved into a cultural hub. The sale includes 40 residential units and secures a long-term lease with the Arts & Culture Alliance, while plans for future renovations and exciting developments are underway.

Knoxville’s Historic Emporium Building Sells for a Whopping $24.75 Million!

Knoxville, the charming city with deep-rooted history and vibrant culture, is buzzing with excitement following the recent sale of the iconic Emporium Building! This remarkable structure, situated on the bustling 100 block of Gay Street, has an enchanting history that dates back to 1898. Originally designed to serve as a furniture store and later transforming into a bustling manufacturing hub, the Emporium has seen its fair share of changes over the decades.

A Shift in Ownership

Back in 2002, the building was purchased for a mere $800,000 by Dewhirst Properties. Fast forward twenty years, and Dewhirst Properties revamped the Emporium into a vibrant cultural center, making it home to the Arts & Culture Alliance and offering a total of forty apartments. However, after two decades with minimal changes, the stage was set for exciting new developments!

New Players in Downtown Knoxville

In late 2022, Boghani Properties entered the scene with a bold vision as they began acquiring properties in downtown Knoxville. Their purchase spree included 9 Market Square for $3.9 million and 408-414 South Gay for $6.3 million. Their daring ambition culminated in December 2022 when they finalized the purchase of the Emporium along with an adjacent parking garage for a staggering $24.75 million!

The Sale Unfolds

The sale of the Emporium, valued at $19 million, wrapped up after nearly six months of negotiation. The deal not only includes all the residential units but, interestingly, the Emporium space itself stays under the ownership of Boghani Properties, which has secured a long-term lease with the beloved Arts & Culture Alliance. Not to be overlooked, the adjacent parking lot wasn’t included in the sale either.

A Glimpse into the Living Spaces

Among the forty residential units, twenty-one are already under contract, while nineteen remain available. Some of these homes are currently occupied or undergoing renovations. These units offer a variety of configurations, ranging from cozy studios to spacious three-bedroom apartments, catering to diverse tastes. Sizes range from 730 to 1800 square feet—there’s something for everyone!

Market Insights

The real estate buzz is palpable, particularly as buyers from both local and out-of-state markets (including many parents of university students) are drawn to these lofts. With prices nearing $500 per square foot for larger homes and around $600 per square foot for smaller units, many buyers are eyeing the potential to update or renovate their future homes as downtown property values continue to rise.

Future Plans in the Works

Exciting developments are on the horizon, especially with the Compass Group now helmed by new owners Austin Williams and Jay Benson. Renowned for their past projects in downtown Sevierville, they are keen to revitalize downtown Knoxville. There’s a particular buzz about the potential for the building to allow short-term rentals, especially since numerous lofts in the downtown area are currently vacant. Could this be a game-changer for the Emporium?

The Innovative Furnace Project

Let’s not forget the impressive plans for the Furnace project—a part of the Emporium’s ambitious future! With a budget of $4.75 million aimed at crafting an immersive art experience complemented by a midsized theater space, this project is well underway. An incredible $4 million has already been raised, with construction set to kick off in April 2024. This initiative hopes to enhance connectivity between the heart of downtown Knoxville and the vibrant Old City.

In conclusion, the sale of the Emporium is more than just a real estate transaction; it symbolizes a new chapter for Knoxville’s rich tapestry of culture, history, and development. With so many exciting plans and developments, it’s safe to say that the future looks bright for this enchanting city!