Basically I'd like to create a new face right in that selected edge to achieve something like this:
Does Blender have a tool/option to do this or do I need to recreate all of that manually?
Blender Stack Exchange is a question and answer site for people who use Blender to create 3D graphics, animations, or games. It only takes a minute to sign up.
Sign up to join this communityTo add to Hulifier's answer, you can also use the knife tool, K to activate, A to cut orthogonally, right click to release, Enter to validate, then CtrlX to dissolve the edges: