Market Square's St. Oliver Sold

A group led by New York developer Ethan Orley and local real-estate man Philip Welker closed Tuesday on their purchase of the St. Oliver Hotel Building. The purchase price was $1.5 million. After a major renovation--they're working with local architect Josh Wright--they intend to reopen it as an upscale hotel.

"The building is one of the prettiest buildings in the city," says Orley, "and it's an A-plus location. Our idea is that we bring it up to a higher-end use as an upper-end boutique hotel, which doesn't exist in the marketplace right now."

It sounds like the hotel will close in early January, to reopen in early April, 2011.

According to a prepared statement, "The new interiors will have a sophisticated style inspired by boutique hotels in larger cities, yet keep a local flavor very unique to Knoxville."

The building is known historically as the Kern Building. Built by German immigrant Peter Kern in 1876, and designed by Joseph Baumann, perhaps Knoxville's first professional architect, it was originally home to Kern's Bakery, as well as Kern's candy and soft-drink emporium, "ice-cream saloon," and Oddfellows Hall. It went by various other names over the years. It was reconfigured as a 28-room hotel about 30 years ago, and developed an eccentric reputation. It was Patricia Neal's favorite place to stay in her hometown, and it was recently revealed that Elizabeth Gilbert finished writing her global bestseller Eat, Pray, Love while staying there in 2005.

Though Orley lives in New York, he and Welker are concentrating their efforts on Tennessee projects. They're currently at work on the Greenwood Place Apartments in Clarksville, a residential redo of a historic high school. "We have a penchant for historic properties," says Orley. "We want to see them used to their highest potential."

Josh Flory's Property Scope has a few other details.

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