Initial work to build 130 apartments at Bishopsgate Gardens on Ormskirk Road in Preston will begin later this month, according to the developer.
The scheme will sit on the site of former Government office buildings the Red Rose and Elizabeth House, which have been vacant since August 2019.
A mix of one-, two-, and three-bedroom apartments will be available, some with private terraces and two storeys. Prices are expected to start from £110,000.
Bishopsgate is scheduled to open in mid 2020. It will also feature a coffee shop and hair salon on the ground floor, along with a shared office space.
Chris Holland, director at The Heaton Group, said: “We expect the apartments to be popular with both the buy-to-live market and also those looking to invest in Preston following significant investment in the area.
“Preston is one of the most up-and-coming areas of the UK, with significant investment being put into the restoration, redevelopment and improvement of the city centre and surrounding areas.”
Average prices for flats and apartments in Preston have grown by almost 75%, or £50,000, in the past year, Holland added. Average yields stand are over 8%, higher than the UK average of between 5% and 6%.
The scheme was designed by architects Studio KMA. The Heaton Group completes its developments in house, so the developer-contractors are HG Developments and Heaton Group Manchester.