Knoxville’s Community Development Corporation (KCDC) and the City of Knoxville have reached a celebratory milestone as construction begins on a historic building in North Knoxville to transform the once problematic structure into an architecture firm and commercial rental space. 

The nearly 100-year-old Sanitary Laundry Building, located at 625 N. Broadway, operated as a commercial dry cleaning business from 1925 until 1993, leaving behind chemicals and compounds that proved troublesome for traditional resale and development.

KCDC, which serves as the City of Knoxville’s official redevelopment arm, was instrumental in shepherding the project through remediation and into redevelopment. The City acquired the property through a tax foreclosure in 2014 and turned it over to KCDC earlier this year. 

-- In May 2016, the U.S. Environmental Agency (EPA) awarded the City $350,000 in Brownfield Grants to remediate contamination on two properties: the former sites of the McClung Warehouses and Sanitary Laundry site. Read more. 

“This is a great example of how KCDC facilitates redevelopment for the city, especially with complicated and blighted properties,” said Ben Bentley, executive director and CEO of Knoxville’s Community Development Corporation. “We were able to consolidate the Sanitary Laundry Building and the parcel behind it, secure grant funds for remediation, and negotiate directly with McCarty Holsaple McCarty to develop the property.” 

The redevelopment organization helped secure a $500,000 grant from the Tennessee Department of Environment and Conservation (TDEC) to remedy lingering hazards, and renovations are now set to begin on the two-story, 30,000-square-foot building that will house the architectural firm.

“It is an incredible achievement to be able to work together to transform a structure that was once in need of remediation and not only save it, but also turn it into a historic showpiece for the community,” said Gwen McKenzie, Knoxville City Councilwoman for the Sixth District. 

Knoxville City Council voted Dec. 10, 2024, to approve payment-in-lieu-of-tax (PILOT) incentives for the project.

“This is a situation where this incentive really makes sense,” said City Councilmember Lauren Rider, who represents Knoxville’s Fourth District. “The architecture firm could have built its offices elsewhere and this structure could have remained vacant. This incentive makes the project financially feasible for development.”

The boarded-up brick building with historic arched windows sits on North Broadway near North Central Street just across from the new mural installation, Knox Walls at Emory Place. 

“The project will be impactful for the continued revitalization of this corridor,” said Rebekah Jane Justice, the City of Knoxville’s chief of urban design and development. “We’re excited to retain the historic character of the building and continue to breathe new life into the area.” 

Justice said the redevelopment will continue the resurgence already underway in North Knoxville with past and recent additions such as Emory Place, Jacks, The Press Room and Axle Logistics headquarters. 

McCarty Holsaple McCarty closes on the property in December and plans to use over half the renovated space for the firm’s headquarters and offer the rest for commercial tenants along with some shared spaces like a meeting room and community cafe. 

“We are excited about using our talents to bring this building back to life and create a collaborative workspace for other entrepreneurs and creatives in the community,” said Nathan Honeycutt, a principal and architect with McCarty Holsaple McCarty. 

The firm is also seeking federal historic tax credits to offset the renovation costs. Honeycutt said construction should be complete in the fall of 2025. 
KCDC and the City of Knoxville have partnered on numerous redevelopment projects including Market Square, World’s Fair Park, the former Baptist Hospital site, the ongoing redevelopment of the former St. Mary’s Medical Center site, and the McClung Warehouses.