One of downtown Knoxville's most familiar office towers is on track to trade some of its cubicles for condo kitchens.
LawlerWood LLC is under contract to buy the 13-story U.S. Bank building at 607 Market Street in downtown Knoxville, with plans to convert the upper floors into residential units while keeping commercial space at street level. The tower sits just steps from Market Square and Krutch Park, a spot developers say is tailor-made for downtown living. The company has not released a purchase price and is hoping to close the deal in March 2026.
Buyers' plan and timeline
As reported by WBIR, LawlerWood executive vice president Joe Petre confirmed the company is set to purchase the building and is exploring a conversion that would keep U.S. Bank operating on the ground floor. The station notes that the sale price has not been disclosed and that the buyer is aiming to close sometime in March. Petre told the outlet that final details, including the mix of units and the amenities package, will be worked out after closing.
Conversion details and what homes might look like
Petre told Inside of Knoxville the developer could create roughly 50 condos, with potential amenities such as an upper-floor workout room and a penthouse level. He said the building's large windows are both a major asset and a design challenge, and that the company hopes to start construction this summer and wrap up the project in about a year and a half. "We don't have to build a building," Petre said, highlighting why a conversion could move faster than ground-up construction.
Building details and site
Property marketing materials list the tower at about 122,859 square feet, roughly 123,000, and note it was built in 1965. The offering also includes an adjacent surface lot at 413 Clinch Avenue with 43 parking spaces. The listing, posted by SVN | Wood Properties on LoopNet, says the parcels are zoned DK-G, which allows mixed-use and multifamily development. That flexibility gives the buyer room to convert office floors into housing without a major rezoning fight.
Why this matters for downtown
Bringing new residents into the city's core remains a key piece of Knoxville's downtown revitalization strategy, and converting an existing office tower would put dozens of households within walking distance of Market Square restaurants and events. LawlerWood, founded in 1975 and known for projects such as Axle Logistics and City Summit, told Inside of Knoxville it does not plan to seek public subsidies such as PILOT or TIF incentives for this project. That approach could speed approvals and limit public costs while the developers test demand for more downtown living.
U.S. Bank and ground-floor businesses, including the French Market, are expected to remain in place while the upper floors are reworked, according to reporting. WBIR notes that LawlerWood hopes to close in March and plans to share more details as the conversion plans firm up.
