Groundbreaking at Former St. Mary's Hospital Site
November 4, 2026, 9:04 p.m.

DGA Residential, along with community leaders and partners, officially broke ground Nov. 4, 2026, on Riella at Oakwood, a 170-unit multi-generational affordable housing community at the former St. Mary’s Hospital site in North Knoxville. Participants in the ceremony, from left, are: Becky Wade, KCDC board; Ben Bentley, KCDC executive director and CEO; Peter Hall and Mark Taylor, Dominion; Craig Cobb, DGA Residential; Knoxville Mayor Indya Kincannon; Knoxville City Councilman Charles Thomas; Walter Perry, HUD; Ralph Perrey, THDA; Eric Schmittou, Pinnacle Financial Partners; Rob Rotach, Walker & Dunlop; and Drew Sutherland, Empire. Image by DGA Residential

KNOXVILLE - DGA Residential, along with community leaders and project partners, officially broke ground Nov. 4 on Riella at Oakwood, a 170-unit multi-generational affordable housing community at the former St. Mary’s Hospital site that will include multifamily units and townhomes, plus the renovated historic hospital, which will prioritize housing for seniors.

The North Knoxville development at 1880 Huron St. will transform the historic 96-year-old hospital building into 40 one-bedroom units with modern finishes and washer and dryer hookups. The former hospital opened in 1930 and closed in 2018. The historic building’s wider hallways will help accommodate wheelchair access, and elevators will allow easier movement to all floors. Contractors hope to preserve as many historic features as possible, including a Tennessee marble architectural niche, a prominent cross at the roofline, and marble lobby flooring.

“We designed Riella at Oakwood to transform these 5.5 acres into a multigenerational community that serves residents while complementing the neighborhood’s character,” said Craig Cobb, president of development for DGA Residential. “We are committed to creating quality affordable housing where people of different ages can enjoy a vibrant community.”

The 21 townhomes along E. Churchwell Avenue will feature varying rooflines and distinct porch designs to complement the neighborhood and encourage connection among neighbors. The three-story structures will have three- to four-bedroom units. The 109-unit multifamily building will offer one- to three-bedroom units, as well as quality amenities, including fitness and community spaces.

In total, the development will provide 45 one-, 50 two-, 64 three- and 11 four-bedroom units that will be built in phases with full completion expected in fall 2028. All residents will have access to fitness centers, business centers and community rooms, along with a playground, pavilion and neighborhood dog park.

The City of Knoxville invested $2 million from its Affordable Rental Development Fund that will support 67 units for extremely low-income households earning 30 percent or less of the Area Median Income (AMI), which in Knoxville is $36,300 for a household of one and up to $51,850 for a household of four.

“When the City purchased this property from Tennova, we had two goals: to preserve the historic St. Mary’s hospital building and create more opportunities for people to live in beautiful, walkable Oakwood Lincoln Park,” Knoxville Mayor Indya Kincannon said. “I’m grateful to KCDC for bringing on DGA as a partner and working so closely with Oakwood Lincoln Park neighbors to make these goals possible for residents of all ages, incomes, and needs.”

Co-developed and co-owned by DGA Residential and Knoxville’s Community Development Corporation (KCDC), Riella at Oakwood will remain affordable housing for at least 30 years.

“KCDC’s partnership with DGA Residential is expanding the availability and quality of affordable housing in Knoxville,” KCDC Executive Director and CEO Ben Bentley said. “We share the same focus on building communities that provide quality housing and create opportunities for residents to thrive.”

Utilizing the Low-Income Housing Tax Credit (LIHTC) program and Section 8 Housing Choice Vouchers (HCVs), rental assistance is available for qualified tenants making up to 80 percent of Area Median Income (AMI), which is about $82,950 for a family of four.

Support for the affordable housing complex is provided by the City of Knoxville, U.S. Department of Housing and Urban Development (HUD), and Tennessee Housing Development Agency (THDA). Pinnacle Financial Partners and Walker & Dunlop are providing financing, Brock Hudgins Architects is providing architectural design, and Dominion and Empire Construction serve as general contractor.

For more information about DGA Residential, visit riella.us.

DGA Residential LLC is an affordable housing development and management company focused on the construction, acquisition, rehabilitation and management of apartment communities. DGA Residential is a brand of Dominion, a company that started out of a passion to positively affect the community through real estate development. Dominion currently owns 32 properties across the Southeast, including 16 affordable housing communities and 16 market-rate communities. DGA Residential serves as the platform for both current and future affordable housing endeavors and seeks to create a unique experience for both residents and employees, providing superior housing and establishing a sense of community in which residents are proud to live.