U.S. Bank Building Under Contract; Initial Plans Released

Last July when Leslie reported the U.S. Bank Building was being offered for purchase, a number of questions surfaced immediately. Would the new owner (like the current owner) come from outside Knoxville, or would a local developer purchase the building? Would the building continue to be utilized largely as office space? What of the beloved downtown institution, the French Market which occupies a portion of the building along Clinch Avenue?

While the transfer of ownership is in its early phase and more questions will be addressed later, some of the answers are coming into focus. The building is now under contract and, barring a very surprising development that changes the situation, the new building owner will be LawlerWood, LLC, the Knoxville development company founded in 1975 that has completed many projects around downtown (Axle Logistics and City Summit are recent examples) and far beyond. While a few details remain to complete the transaction, the contract should be executed and the transfer made very soon.

I spoke with Joe Petre of LawlerWood, who said plans for the building call for as many as 50 new downtown condos in what will be a mixed-use building. U.S. Bank will remain in the building as a tenant, and he said they have been great to work with, though the amount of space they carry forward may shift to be more in line with their current needs.

As it stands, they occupy very little of the total building, including per Leslie, “part of the first and the full sixth floor under a lease that runs through 2031, though they’re open to a smaller footprint and repositioned branch space.” In addition to the bank and French Market, only an 11th floor tenant remains, and they are planning their move.

Petre pointed out the massive windows as an amazing potential feature for future homeowners, but a challenge for the design of the units. He’s excited to get started, but details about configurations and space allotment will be made in the next few months. He envisions amenities, like a workout room, on the upper floor, as well as a penthouse. He noted that given the building’s placement, right in the center of downtown, it “has spectacular views” which include other notable downtown buildings, the Sunsphere, Neyland Stadium, and the Smoky Mountains.

One common hurdle that slows the pace and final commitment of the developer in other projects will not be an issue in this case, as the company has no plans to ask the city for a PILOT or TIF. The company feels that the project will prove profitable enough that they will not need public funding support in any form.

Not only will that expedite the process by removing that portion of approvals, it should offer music to the ears of those who are typically critical of that type of public support, while also offering a testimony to downtown revitalization in that we may now be to the point that projects can stand on their own.

As a bonus to the company and to future prospective homeowners, the turnaround should be quick. Noting, “We don’t have to build a building,” he said the hope would be to start construction this summer and complete the project in just over a year, making the new homes available mid-to-late 2027.