In 1900, Aggieville was a muddy and vacant lot students were forced to trudge through to get to the main shopping district on Poyntz Street.

By 1913, things were turning around, and people began to build stores and restaurants on Moro Street, creating what would become Manhattan's beloved Aggieville, according to Riley County Museum archives.

One of these stores was The Palace Drug Store, built in 1913 on Moro Street, near where Thread is today.

"The Palace and Varney's are the two oldest names in Aggieville that are still around; not very many places have stayed the same," said Kevin Pierce, who now owns The Palace with his wife, Phyllis.

The Peases said The Palace used to be a very popular hangout among students, with a soda fountain attached to the drugstore and a second-story dance floor. After a fire, the store moved to its current location at 704 N. Manhattan Avenue in 1924 and lost the dance floor, but kept its reputation as a quality drug store and fun place to hang out. The Peases said they have had customers come into the store and tell them they had their first date in The Palace, or became engaged there and are still married.

The Palace is very colorful and ornate, and original details like the mosaic tile floor and wooden booths are still intact almost a century later.

Over time, The Palace transformed into the lifestyle boutique it is today, with products from bar glasses to furniture hand-crafted by Phyllis. When the Peases bought the store last summer, they decided to add a cafe to the boutique, and closed The Palace for two months to remodel.

"The store started out with food; there was a soda fountain from 1929 to 1976, and it felt like a good fit to bring back fresh, quality food," Kevin said.

Kevin runs the cafe side of the store while Phyllis runs the retail side, but they say both sides intertwine quite a bit. Kevin created the menu, which includes sandwiches, pizzas and salads, all made to order with fresh ingredients.

"Even all the dressings are made in-house," Phyllis said. "It's not like you're getting something poured out of a can."

Kevin also runs Bluestem Bistro, and the Peases said Aggieville is a great place to start a business.

"We are both K-State graduates, and it would have been very easy to just go somewhere else and start a business, but we came back," Phyllis said. "There are so many great local places to shop, and the fact that it's a college town keeps things interesting."

"Places like ours and others in Aggieville keep this town unique," Kevin said. "You can go to a Starbucks anywhere, but there aren't very many stores like ours around."

Phyllis said the store offers a mix of local and national vendors and also displays the work of local artists. The owners find products on trips to New York and Chicago, too.

"This is the only place around you can get a candle and a pizza," Phyllis said. "There are stores like us in bigger cities, but nothing around here."

The Peases said some of their most popular products are their bar products