Knickerbocker was built as a commercial tug of the same name in 1873 by Neafie & Levy at Philadelphia, Pennsylvania. She was rebuilt in 1904. The U.S. Navy leased Knickerbocker from her owner, the Cornell Steamboat Company of New York City, on 2 May 1917 for use during World War I and enrolled her in the Navy Coast Defense Reserve, then purchased her outright from Cornell Steamboat on 13 September 1917. She was commissioned at New York City as USS Knickerbocker (SP-479) on 22 September 1917 with Boatswain M. J. Lounsbery, USNRF, in command.