One of downtown Knoxville's most conspicuous patches of pavement is finally changing hands. A Knoxville hotel group has purchased the surface parking lot owned by First Baptist Church downtown for $5 million, handing a long-vacant parcel to a hospitality-focused developer that has been eyed for hotels and mixed-use projects. The sale, announced Friday, centers on the corner of West Hill Avenue and Locust Street and clears a compact but highly visible downtown site that planners and neighbors have watched for years.
Who bought the lot
According to Knoxville News Sentinel, hospitality developer 9 Group paid $5,000,000 for the parcel. The News Sentinel reported the transaction this week and identified the purchaser as a hotel-oriented company, while noting that no building permits and no construction timeline have been announced.
First Baptist leaders had flagged a $5 million offer in a November 2025 bulletin and said the congregation would use the proceeds to sustain its long-term downtown presence and mission work. As the church wrote in a blog post, it had "received a $5 million offer" on the surface lot and asked its finance committee to formulate a plan for the funds. See the church's announcement at First Baptist Church of Knoxville.
What could be built
Developers and planners have long eyed the Hill & Locust block for infill, and local trackers show hotels and mixed-use projects moving forward nearby. Coverage of downtown development notes that contiguous parcels in this area are attractive for larger builds that stitch together retail, rooms and parking. Inside of Knoxville has a recent roundup of projects and activity on and near Locust Street.
Parking and downtown ripple effects
The First Baptist surface lot has also served downtown drivers and Sunday worshippers, and downtown parking guides list the lot at the West Hill and Locust corner in the city's short-term inventory. Redevelopment would remove low-cost surface parking and could push demand onto nearby garages and meter lots, a shift that downtown businesses and churchgoers may notice. See the lot listing at Downtown Knoxville.
What's next
Major projects on sites like this typically require rezoning or detailed site-plan review and sign-off by planning staff and the metropolitan planning commission before building permits are issued, in line with municipal rules. The city's zoning and site-plan procedures outline those steps and timelines for downtown developments, and interested residents can consult the municipal code for details.
For now, the buyer has not released designs and the church says it will use the proceeds to fund long-term ministry work. Neighbors and downtown watchers will be tracking permit filings and any public outreach as the site moves from empty pavement to whatever comes next. Coverage will be updated as official plans, filings or community meetings are announced.
