Downtown Development Update, January 2026

Four months have clipped by since the last set of photographs of the major developments underway in the heart of downtown. There’s been quite a bit of movement as you’ll see in the photos if you compare them to the update from last September. Several others have been announced, but not yet underway, while for others we have more detailed updates coming soon. For now, we’ll look at the primary four well underway in the heart of the city.

Lone Tree Pass

We’ll start with the one that seems to be closest to completion and work our way back. That puts us starting with Lone Tree Pass, which began construction in 2022. The project includes two buildings, one to the east and one, facing the 200 block of Gay Street, to the east, with both including residential spaces. A commercial corridor will separate the two and will include commercial spaces in each building. The western building is very close to completion, with the east-facing building not too far behind. In addition to the commercial corridor spaces, the building to the east will feature commercial spaces along Gay Street.

Regarding the commercial space, three businesses have confirmed their intent to open locations there. Locally owned Jaboni’s Pizza (locations in west Knoxville and Maryville) will step in featuring their New York style pizza, along with calzones, pasta, and more. Tree Top Coffee, also locally owned and operated, will join them by opening their second location. The shop is headed by two young women who chose to move their coffee truck from Texas to Knoxville and then opened their first stationary location in Sequoyah Hills. Finally, Atlanta-based Flying Biscuit Cafe will open their second Knoxville location featuring their southern-comfort breakfast and brunch food. More announcements should be coming soon.

Pre-sales on homes have begun with an anticipated opening of the west building within weeks and the east building a bit later. Of the forty-four units in the West building, four are currently for lease, seventeen are under contract, and twenty-three remain available. All eleven residential units in the east building are under contract. Prices for the remaining available units range from $590,500 (823 sf) to $1.7 million (2287 sf), mostly hitting over $700 per square foot.

As the construction continues, I better understand how the project will look and function. The commercial corridor became clearer to me this time around. I’d seen the stairs required to enter from Gay Street and hadn’t considered other entrances. It’s now clear that the corridor may be entered from the south directly from the sidewalk along Summit Hill. Additionally, a sidewalk exit ramp of sorts has been poured on the north side, meaning pedestrians walking down Vine from the many residences (new and old) or from mass can walk directly into the corridor. I’m thinking Flying Biscuit may be very well positioned for the brunch business.

I’ll have more on this project soon, as I hope to get a look around inside. In the meantime, for more information regarding commercial or residential spaces, check the website.

City Summit

A year ago, the site featured footers and nothing had risen above ground level. Now the full building has taken form. Balconies and windows are in place and interior work is underway. At an estimated 89 homes, this building will be a gamechanger for foot-traffic coming up and down the hill, with, mostly likely 125 to 150 new residents. Add the anticipated project just down the hill across from the church and the area becomes a large population center for downtown in the future.

It’s an interesting residential area, with Summit Tower offering homes to folks who struggle, expensive town homes, and now a larger building offering market-rate housing. Sort of like a city. All the above should serve as a boost for commercial endeavors on the 100 block, 200 block and in the new commercial corridor just down the hill.

There will be additional news about this project coming very soon.

AC by Marriott

Next in line with a projected completion date of late 2026 is the AC by Marriot, announced in February 2024. Downtown’s next hotel started construction last May. With one end facing Walnut Street and the other fronting Locust, the building is wedged between the Daylight Building (which is increasing ironically named as the daylight disappears) and the Langley Building. When completed, it will loom higher than even the garage.

Projected at seven stories with 162 rooms and a public-facing rooftop bar, the biggest shifts in the visible portion of the construction from four months ago include the rapidly expanding addition of floors. The metal framing (not wood as is most common in local construction) is in place for the bottom two floors and metal covering is rapidly expanding between the two, putting future work on the first floor under shelter making it easier to work in a wider range of weather.

I said it last time, but this is going to be a very cool rooftop view, just off the beaten path from Market Square and Gay Street. Sunset views, Sunsphere views and cool look across downtown should make this a popular spot.

Vintage Cal

Next up is our newest entry to break ground  and officially cut the ribbon with plans to build out 167 new homes and several commercial/office spaces. It sits just a block from Gay Street adjacent to Marble Alley and seems likely to make that area much livelier. The project will include its own garage for onsite parking. Combine as many as 300 new residents with Marble Alley to one side and a garage filled with commuters on the other side, and perhaps businesses will follow the increased foot traffic.

The photos of the site may not look like much has happened, but do not be mistaken: The project is moving rapidly and work is intense. The former parking lot has been removed, and the site has been re-graded to match building plans. A retaining wall has been built along State Street and bordering Marble Alley since my last look. Footers were being installed as I walked by for these photographs.

I expect this one to rise quickly. In addition to changing downtown with the addition of residents, this is another building that changes the fabric of downtown. Where once a parking lot was visible from several directions, a new building will add a new layer to our tiny downtown.