Work has started to transform two office buildings at Dawsons Corner in Pudsey, Leeds, into 140 apartments totalling 96,434 sq ft.
They were last used as a call centre by breakdown specialist Green Flag before owner Direct Line decided to relocate staff to its premises in Leeds city centre last year.
Leeds-based Headoffice3, which is in charge of the project, bought the site on behalf of Marco Island Developments for £3.5m a few weeks ago and will spend £6.5m on the conversion.
Green Flag House, which is spread over three floors, rising to four in the northern wing, will contain 110 apartments. Park House, which is set over three floors, will house 30 apartments.
Green Flag House is to be renamed Greenleigh Court and Park House will retain its name. They are expected to be ready by the end of 2017.
Headoffice 3 is also looking to develop part of the huge car park into a community building or more housing. “The car park is ripe for development. There are 329 spaces and we don’t need all of those,” said chief executive Glen Harding.
In addition, the firm is also considering installing ground source heat pumps, which would add about £1m to the cost.
The scheme, which is on Bradford Road halfway between Leeds and Bradford, is one of the biggest private rented sector schemes currently on site in the city.
Investors are keen to put their money into the private rented sector as the demand for new housing grows. Many are looking for office blocks that can house 100-plus apartments.