The former Westwood Yarns site in Holmfirth, near Huddersfield, is set to be transformed into a community and workplace after being sold to the West Yorkshire-based property developers, Prospect Estates.
Prospect Estates has plans to build 50 residential units, as well as converting the historic mill into 12 apartments. The company also hopes to transform the Millpond building into a hotel and restaurant.
Part of the office and workshop accommodation will be leased by the Oil Can Café and IK Classic Cars. Sanderson Weatherall was appointed by administrators KPMG to market the site in March 2016.
The sale of the property follows the announcement earlier this year that Sanderson Weatherall had sold the majority of the machinery and assets at auction, raising around £1m.