Altar'd State to Open New Downtown Knoxville Store

The retailer is expanding its presence into the historic Kress Building on South Gay Street.

Updated on Oct. 27, 2026 in Openings & Closings

Historic brick building facade with large glass display windows along a quiet downtown Knoxville street. — Knoxville-based retailer Altar'd State will open a new location in the historic Kress Building on South Gay Street following a recent acquisition. AI Illustration. Upload story photo >

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Knoxville-based retailer Altar'd State will open a new retail location at 419 S. Gay St. following the acquisition of the Kress Building. The move repurposes the downtown structure after the departure of its previous tenant.

Why it matters

This expansion brings a major local retailer into the heart of downtown Knoxville, signaling continued investment in the city's central business district. The move utilizes a prime piece of real estate that has remained vacant since the prior cafe tenant exited.

The Kress Building, located at 419 S. Gay St., was purchased for a total of $6 million. This investment follows the 2025 closure of the cafe Frothy Monkey, which previously occupied the space.

The players

Altar'd State

A Knoxville-based retail clothing and lifestyle company that operates stores across the United States.

Aaron Walters

The CEO of Altar'd State who registered ASR Kress LLC to facilitate the purchase of the Kress Building.

ASR Kress LLC

A corporate entity registered to Aaron Walters that purchased the Kress Building for $6 million.

The details

ASR Kress LLC, a company registered to Altar'd State CEO Aaron Walters, completed the purchase of the building to house the new retail site. This addition joins the retailer's existing regional presence, which includes locations at West Town Mall and along Kingston Pike.

Frothy Monkey closed its cafe at the Kress Building in 2025.
The sale of the Kress Building was finalized on Sept. 17, 2026.

Market Landscape

This project follows the established pattern of historic building adaptive reuse within the downtown Knoxville retail corridor. It positions the company to compete for foot traffic in the city center against existing Market Square retailers.

Shoppers can expect a new retail option in the downtown area once the site finishes its transition from a former cafe space. This move adds a major local brand to the street-level retail mix, potentially increasing shopping activity along South Gay Street.

The takeaway

The transformation of the Kress Building demonstrates how local retail brands are increasingly investing in city center real estate to solidify their presence. Residents and visitors should look for updates on the store opening as the company begins its interior development phase.