With the soon-to-open Covenant Health Park bringing new activities, employees and crowds of visitors to Jackson Avenue, the Old City is in flux. The neighborhood is quickly becoming a hot spot for development, but even with changes on the horizon, an established building is here to stay.

A company focused on historic preservation has purchased the Old City Performing Arts Center building at 111 State St., according to a news release.

A fund managed by GBX Fund Management Ltd. acquired the building at the end of 2024, and the business has been at work ensuring the historic property endures as the Old City landscape evolves.

The building’s exterior has been protected by a historic preservation agreement with the American Easement Foundation Inc., which GBX helped facilitate. So this is one downtown building façade you can count on to stay the same.

GBX Group acquires and helps to protect and operate historic real estate across the U.S., and this is its first site in Knoxville. Federal, state and local incentive programs contribute to funding the preservation of such historic structures.

What’s the history of the 111 State St. building?

This building dates back to the late 19th century, when it was constructed as an ice factory, Knox News reported in 2019.

Before becoming the Old City Performing Arts Center, the space was owned by Cor-Tenn, which used it as a construction supply warehouse.

What’s next?

River & Rail Theatre Company, which owned the Old City Performing Arts Center, sold the property at the end of 2024 before announcing plans for its new “forever home” at 2651 Magnolia Ave., according to a post on Instagram.

Although the building no longer belongs to the company, River & Rail has a year-long lease on the Old City performance space, said Brian Cappelli, the GBX president of real estate.

After that, the building’s use is yet to be determined. One option is for River & Rail to continue leasing, but if not, the 7,000-square-foot space could be used for a number of ventures, and a theater isn’t the only one.

Cappelli mentioned a restaurant or a creative space as examples of what it could become.

Hayden Dunbar is the storyteller reporter. Email [email protected].

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