GBX Buys the former Old City Performing Arts Center and The Standard; Former Sweet P’s Building Sold

GBX, a historic real-estate investment company based in Cleveland, Ohio has purchased several downtown buildings, marking their first incursion into the Knoxville market. Late last year the group acquired the building at 111 State Street, most recently home to the Old City Performing Arts Center and River and Rail Theatre Company. Now, in a sale brokered by Will Sims of Oliver Smith Realty, the group has purchased  The Standard Event Venue at 416 W. Jackson Avenue from Dewhirst Properties. Sims also brokered the sale of the adjacent building the adjacent building at 410 W. Jackson (formerly Sweet P’s), to Boghani Properties. The two buildings were developed by Dewhirst Properties in 2013.

I spoke to Mark Heinz with Dewhirst Properties who recalled being excited about the building and considered developing it as residential in 2013. Instead they found a use for it as an event center and he said it has been great with “many weddings and other memories” for many people in our community. He said they are excited to have the building in the hands of GBX because they know it will continue to be preserved. He also feels it will play a central role in a rapidly developing part of downtown over the next few years. He noted that everyone who has reserved the space for events will have their reservations honored by the new management.

GBX purchases buildings, many of which need revitalization, in urban areas across the country. Their projects cover more than two hundred properties in twenty four states, including Tennessee. While these are their first purchases in Knoxville, they also own eight buildings in Nashville and another in Chattanooga.

In conjunction with purchasing the buildings, the company partners with local or national historical preservation groups to add an easement, or protection, to the historic building that protects it “in perpetuity.” In the case of 111 State Street, their partner group was the American Easement Foundation, Inc. In the case of 416 W. Jackson, they have partnered with Knox Heritage. After purchase and protection is established, the company continues to operate the building either directly or through a management company, seeking the best use for the building.

Any changes to any of the buildings purchased by GBX would be overseen by the preservation agency with whom they are working on a project. Of this one, Christine Cloninger, Executive Director of Knox Heritage said, “A preservation agreement is about creating lasting protection for a historic resource, regardless of future ownership or market conditions. This agreement ensures that The Standard’s defining architectural features and historic character will be protected in perpetuity, providing long-term certainty that this important building will remain part of Knoxville’s historic landscape.”

I spoke with Kelsey Sparacia with the company’s public affairs department who noted that the group is celebrating twenty-five years of “acquiring, preserving, and operating historic properties.” She said they are always looking for new markets and after working on several projects in Nashville and one in Chattanooga, they found first one, then another in Knoxville that fit their mission.

She said they see the Standard as “a prime location in downtown Knoxville, and we partnered with Knox Heritage to make this happen.” She confirmed that the current plans call for continuing to operate the building as an event space. “It’s a beautiful space and it’s in great condition.” She added that with the rapid pace of development in so many cities and the demise of older buildings in favor of skyscrapers, “and what we’re really passionate about is being able to preserve those buildings that have a story behind them, and keep those buildings a part of the fabric of local communities.”

As to whether GBX might be interested in acquiring other Knoxville properties, Kelsey only noted that they always remain open to purchasing buildings that fit their model.