No extension? No problem. Downtown developer goes ahead with apartment plan on county land

Ryan Wilusz, Knoxville News Sentinel
·4 min read

Thirteen years is long enough.

One of Knoxville's downtown developers will move forward to purchase the remaining parcels of county-owned land on State Street for a mixed-use apartment development next to Marble Alley Lofts, a transformative apartment community he developed and opened in 2016.

His decision follows an earful of criticism from Knox County Commissioners who, at a work session last week, seemed hesitant to wait any longer for the deal to close.

Buzz Goss has been working with Knox County since 2009 with the intent to purchase the land at a price that would increase by 2% each year. Now, in 2022, the price is $1.07 million for the 1.25 acres, far less than what other empty lots are selling for in downtown Knoxville.

A nearby surface lot at the corner of South Central Street and Willow Avenue, for example, sold for $4 million in July to hotel development company Ephant Group.

Goss approached Knox County Commission at its work session last week to ask for a six-month extension beyond his December deadline. However, both parties agreed in 2019 there would be no more extensions beyond 2022.

An early rendering of Vintage Cal, a 170-unit apartment complex planned next to Marble Alley Lofts in downtown Knoxville, shows one of two "sky courts" planned for one story above State Street. A cocktail pool is possible for one sky court, developer Buzz Goss told Knox News, and the apartments will range from studios to two-bedroom units.
An early rendering of Vintage Cal, a 170-unit apartment complex planned next to Marble Alley Lofts in downtown Knoxville, shows one of two "sky courts" planned for one story above State Street. A cocktail pool is possible for one sky court, developer Buzz Goss told Knox News, and the apartments will range from studios to two-bedroom units.

The proposed extension was scheduled for a vote at Monday night's Knox County Commission meeting, but the item was withdrawn from the agenda. Goss told Knox News in a text message that after hearing some commissioners request proceeding with the acquisition, he decided to move forward with closing on the parcels by the end of the year.

"I'll close as soon as the county and I can cross t's and dot i's," he said Monday.

Goss told Knox News the project will move ahead as planned, despite not receiving the extension.

Knoxville developer shares reasons for the wait

The developer's vision for the property dates back to around the time of the Great Recession which, according to Goss, is at least partially to blame for Marble Alley not breaking ground until 2014.

Developer Buzz Goss gives a tour of Broadway Baptist Church's Pollard Building, which he is planning to transform into apartments. Goss simultaneously is working on a seven-story downtown development that will include apartments, retail, and office space, with below-ground parking, next to Marble Alley Lofts on State Street.
Developer Buzz Goss gives a tour of Broadway Baptist Church's Pollard Building, which he is planning to transform into apartments. Goss simultaneously is working on a seven-story downtown development that will include apartments, retail, and office space, with below-ground parking, next to Marble Alley Lofts on State Street.

The lofts opened in 2016 and were followed by additional apartment projects by other developers around downtown. Goss told commissioners he didn't start on developing the remaining five parcels because he did not want to compete with other projects.

Then came the COVID-19 pandemic and, now, a construction market proven to be unpredictable for other major projects around downtown, including the multiuse stadium just east of the Old City.

Goss said an extension would better match his architecture timeline for the roughly $45 million multi-use residential development he has planned for the State Street property.

Adding to the growing mix of downtown apartments

The project is a massive one: six stories of apartments with one level of underground parking and commercial space dedicated to office space and a coffee shop.

The project would be constructed next to Marble Alley Lofts, which was built on county-owned property Goss purchased for $3.5 million, he told Knox News.

Marble Alley Lofts helped usher in a new era of downtown dwellers and led the way for other modern residential developments in the city's core.

Since 2016, Stockyard Lofts has opened in the Old City, just steps away from the forthcoming multiuse stadium. Developer Leigh Burch III also has shared plans for Capitol Lofts, a $30 million development slated for West Vine Avenue.

Goss worked with Burch to redevelop the Sterchi building, which changed the way people thought about downtown living in the early 2000s.

Goss hopes his residential redevelopment planned for a Broadway Baptist Church building near the corner of Bearden Place and Irwin Street can be just as transformative for north of downtown.

Down the hill from the Capitol Lofts site is the 200 block of Gay Street, where Hatcher-Hill Properties is planning more than 50 residential units, more than 20,000 square feet of commercial space across two buildings and a pedestrian plaza.

Tim Hill, co-founder of Hatcher-Hill Properties, has been working on the company's proposed Caldonia Pass project for two years. Going through old renderings, Hill shows Knox News the evolution of the project, which would transform a surface lot in the 200 block of Gay Street into a community of condos, restaurants and retail across two buildings.
Tim Hill, co-founder of Hatcher-Hill Properties, has been working on the company's proposed Caldonia Pass project for two years. Going through old renderings, Hill shows Knox News the evolution of the project, which would transform a surface lot in the 200 block of Gay Street into a community of condos, restaurants and retail across two buildings.

And around the corner from Regas Square, a transformative residential development in its own right, is the MAC building, where live-work units are planned as part of a $40 million development by Rhode Island-based Bluedog Capital Partners.

All these developments could help put a dent in the increasing demand for downtown living.

The city's 98.6% rental occupancy rate is the second highest among 66 markets in the South, making it harder to find an apartment in Knoxville than almost anywhere else in the country. In downtown, that rate is even higher: 99.59%.

When could these apartments be complete?

Goss plans to call his forthcoming State Street development Vintage Cal, named after Knoxville icon Cal Johnson. It would have an estimated 170 apartment units, roughly 80 fewer than Marble Alley Lofts.

Goss estimates construction could be finished between late 2024 and mid-2025.

Vintage Cal would be bordered by Marble Alley Lofts, State Street, Central Street and Union Avenue.

Ryan Wilusz, downtown reporter and urban explorer for Knox News, can be reached at 865-317-5138 or by email at ryan.wilusz@knoxnews.com. Follow Ryan's work on Instagram @KnoxScruff, and sign up for the free, weekly Urban Knoxville newsletter. Unlock premium perks and support strong local journalism at knoxnews.com/subscribe.

This article originally appeared on Knoxville News Sentinel: Downtown Knoxville apartments Vintage Cal planned after land purchase