Work has begun to knock down the former health centre, condemned as “outdated” and “completely at odds” with the local area.
The building on Market Street closed in 2014 following the opening of the new Craddock Road Health Centre, and will now be redeveloped by Pearl, a joint venture between Pendle Council and Barnfield Investment Properties.
The 1970s building is being demolished and will be replaced by a three-storey block of flats, including six apartments for the over 55s over two floors, and retail space at ground floor level.
The health centre sits within a local conservation area, which also includes Richmond Court, the grade two-listed Red Lion pub, and the 15th-century Market Cross opposite the building.
Demolition is due to complete in early October while the apartment block will finish in December 2020.
Tim Webber, managing director of Barnfield, said: “Colne Health Centre, with its outdated appearance and poor design, was completely at odds with the conservation area it was built in.
“As local developers based in Pendle we’re proud to be part of this new scheme which has been designed to be in keeping with its historic surroundings.”