Building work at the site of the former Bramcote School on Filey Road, Scarborough, is underway.
Housebuilder McCarthy and Stone announced that work on the development has already begun.
The work will see the former school transformed into quality retirement apartments.
The new Retirement Living Plus development, called Sycamore Court, will provide a downsizing option for retired people who want to own their a home but need a extra support in the form of domestic assistance. There will also be a chef available.
Sycamore Court will compromise of 55 one and two bedroom apartments.
The company estimates that the average total expenditure generated by its homeowners in the local economy for one of its schemes per year is £670,000.
Apartments will be available to buy off-plan from spring 2018, with first occupations expected in autumn 2018.
Liz Green, regional sales and marketing director for McCarthy and Stone North East, said: “The development has already attracted significant levels of interest from people who are interested in downsizing to a lower maintenance property.”
The debris of the skilled Victorian bricklayers of Bramcote lies in a mound.