KNOXVILLE, Tenn. (WATE) — New student housing along Cumberland Avenue is one step closer after a $233.3M construction loan for “Hub Knoxville” closed, a release states.

Core Spaces, Schenk Realty and Kayne Anderson Real Estate announced the finalization on Friday, saying the loan will finance the development of Hub Knoxville.

Hub Knoxville will reportedly have 600 units and nearly 2,000 beds in two 10-story and one 7-story tower. Unit options will range from studio through five-bedroom floor plans, the release says.

The development will also have an estimated 30,000 square feet of retail space and a roughly 1,800-stall parking garage. Some of that parking will provide essential, designated parking for the Fort Sanders Regional Medical Center and the East Tennessee Children’s Hospital, the release says.

“Spanning over four acres, this project marks the largest student development in Knoxville’s history and will greatly contribute to the transformation and revitalization of “The Strip”, the city’s main hub downtown.” Core Spaces said.

Earlier this year, the City of Knoxville announced that permits had been approved for a “hub on Campus” development that includes more than 800 apartments, 30,000 square feet of retail space and a 10-story parking garage.

In the city’s February release, the city said the approval allowed the developer’s construction crews to demolish existing buildings on the blocks within Cumberland and White Avenues, 19th and 20th streets.

Core Spaces says Hub Knoxville construction began in Spring 2023 and is slated to deliver in phases in Fall 2025 and 2026. They add that Hub Knoxville is expected to create between $700 million and $800 million in economic impact during construction, supporting more than 3,800 jobs.

Read the full release below.

Core Spaces and Schenk Realty are co-developers on the project.