Riella at Oakwood brings 170 affordable homes to historic St. Mary’s site

A historic Knoxville landmark is getting a new purpose as construction begins on Riella at Oakwood, a $70 million affordable housing development that will bring 170 homes to the former St. Mary’s Hospital campus in North Knoxville.

Community leaders and development partners celebrated the groundbreaking Nov. 4 at 1880 Huron St., marking another step in transforming the former hospital property into a neighborhood where history, housing and community services come together.

The project will include 109 apartments with one to three bedrooms, 21 townhomes with three or four bedrooms and 40 one-bedroom apartments in the historic hospital building, with priority given to senior residents.

The original St. Mary’s Hospital building, which opened in 1930, will be preserved and renovated. Developers plan to retain distinctive architectural features, including Tennessee marble flooring, while incorporating modern conveniences and accessibility improvements.

The 21 townhomes along East Churchwell Avenue are designed to complement surrounding homes in the Oakwood-Lincoln Park neighborhood. Residents will have access to community rooms, fitness and business centers, a playground, pavilion and dog park.

Affordable housing for working families

The development is intended to serve households earning up to 80% of the area’s median income, approximately $82,950 annually for a family of four. Eligibility and rental costs will depend on household income and applicable housing programs.

The City of Knoxville is contributing $2 million from its Affordable Rental Development Fund to support 67 homes for extremely low-income households.

“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,” Mayor Indya Kincannon said.

The project was shaped with input from neighborhood residents and places families within walking distance of schools, parks, shopping, jobs and public transportation.

A new chapter for St. Mary’s

Riella at Oakwood is being co-developed and co-owned by DGA Residential and Knoxville’s Community Development Corporation. The homes will remain affordable for at least 30 years.

The development continues the transformation of the former hospital campus, which now includes Lincoln Memorial University’s College of Dental Medicine, the city’s Public Safety Complex and the McNabb Center’s EmPATH facility.

Construction will proceed in phases, with full completion expected in fall 2028. Housing applications are anticipated to open in approximately a year.

For more information about the development, visit Riella.