The Old Town City Council sold a commercial property on Main Street to the Waterfront Concerts promoter. The building on Main Street used to be home to Kingman's.
The Penobscot Times reports Gray intends to develop it into a live music venue and nightclub, which could host 50 performances each year.
The cost of renovating the property is estimated at around $500,000.
No word yet on when Gray plans to open the venue.