The UT Foundation announced in September 2002 that it was partnering with Atlanta-based Place Properties to build a $56 million, 12-story student housing structure on the site of the former “Rose Hole,” called Knoxville Place, using private funds. The project was funded by issuing bonds and did not use any taxpayer dollars.
The UT Foundation purchased the land, and Place Properties constructed the building, which included 741 residences in 218 apartments and 14 townhomes, 851 parking spaces in five levels of parking, and a first floor to be leased to private businesses. The building also included a fitness center, computer lab, study room, activity room, and a small theater. After an agreed-upon number of years of operation by the private developer, UT would own the building.
The structure was not operated by University Housing, so it functioned, as did other commercial apartment complexes. Residents were not subject to UT Housing regulations.
Signing of leases with students began in October 2003, with the building slated to open for fall 2004. Rent was $689 to $698 a month for a one-bedroom unit, with prices decreasing to $400 to $445 for a four-bedroom apartment. Resident move-in for fall semester 2004 was accomplished on time, even though construction on the outside of the building was not complete and some of the furniture for the apartments had not arrived. Workers took advantage of the staggered move-in schedule to complete work in apartments not yet occupied.
In fall 2007 UT Knoxville announced that it was purchasing the structure from the UT Foundation at the developer’s request, for approximately $58 million, since the project had not been as profitable as envisioned. This price was set through considerations for the amount of debt that had been taken out on Knoxville Place, and the limit for the price was set at its appraisal value.
The structure was renamed Volunteer Hall, and opened as a university residence hall in fall 2008, subject to UT housing regulations, as a “type E” visitation property—visitors allowed 7 days a week, 24 hours a day. Resident Assistants were installed on all floors.