Two Downtown Knoxville Properties Hit the Market
September 30, 2026, 12:47 p.m.

Gay Street properties, including Friedman’s Loft. Image by PWA Properties

KNOXVILLE - A century-old Gay Street building rich with Knoxville history and one of downtown’s last remaining undeveloped parcels have hit the market side by side, creating a rare opportunity to preserve part of the city’s past or help shape what comes next.

Listed by Cohl Morgan and Jeffrey Dealejandro of Knoxville's own PWA Properties, the properties include Friedman’s Loft, a renovated early 20th-century building featuring a former bank vault transformed into a private speakeasy, and a neighboring 0.217-acre vacant lot that represents one of the last remaining undeveloped spots in downtown Knoxville.

Friedman’s Loft at 304 S. Gay Street is a 10,000-square-foot property that has evolved through decades of ownership and use while retaining its connection to Knoxville’s history. Most notably, the building was home to Friedman Jewelers, a longtime downtown fixture whose name remains associated with the property today.

Formerly operated as an Airbnb, the three-level property blends historic character with modern comforts and a collection of distinctive amenities. Highlights include the private speakeasy, a spa and sauna, elevator access and a rooftop with a unique vantage point over downtown Knoxville. Together, these features create a one-of-a-kind property that combines the character of a historic downtown building with unexpected, contemporary spaces.

Next door, 308 S. Gay Street offers a different kind of opportunity. With zoning intended to support a mix of downtown uses, the site offers flexibility for future development along S. Gay Street and an opportunity to bring a new commercial, hospitality, residential or mixed-use concept to one of Knoxville’s most established corridors.

“Although they are vastly different, these neighboring properties say a great deal about where Knoxville has been and where it is headed,” said Jay Benson, CEO of PWA Properties. “One offers the opportunity to carry a distinctive piece of the city’s history forward, while the other provides a rare chance to create something entirely new in the heart of downtown.”

“Understanding a property’s potential requires more than looking at the building or land by itself,” said Cohl Morgan, Executive Vice President of PWA Properties. “It requires an understanding of Knoxville, its history and the forces shaping its market today. That perspective allows us to help clients see how an individual property can fit into the city’s larger story.”

As Knoxville and East Tennessee continue to grow, PWA Properties brings together design, development and brokerage expertise to help clients see beyond an individual transaction and understand a property’s broader potential. That perspective is especially valuable in downtown Knoxville, where historic buildings, new development and increasingly limited available land continue to shape the market.

For Morgan and Dealejandro, the two Gay Street properties provide a snapshot of Knoxville at an interesting point in its evolution. One reflects the character and history already woven into the city, while the other offers a blank canvas for what could come next. Together, they illustrate the range of possibilities in Knoxville and the expertise that PWA Properties brings to understanding the value of what has shaped the city and the potential of what comes next.

PWA Properties is a fully integrated real estate firm delivering design, development and brokerage services across East Tennessee and the Southeast. By combining strategic planning, project execution and transaction expertise under one roof, PWA guides investors, developers and business owners through every stage of the real estate lifecycle, from site selection and design through development, leasing and disposition. Guided by its "Plan. Work. Achieve." philosophy, PWA is committed to creating value, reducing complexity and helping clients capitalize on growth opportunities in one of the nation's fastest-growing regions. To learn more, visit PWA-Properties.com.