The former Hotel Tucson City Center, 475 N. Granada Ave., will become Presidio Palms Apartments.

The conversion of a hotel to an apartment complex near downtown Tucson has begun.

Scottsdale-based Sterling Real Estate Partners is turning the former Hotel Tucson City Center, at 475 N. Granada Ave., into an apartment complex with the first units expected to be available this summer.

The developer plans to modernize the interior and exterior of the property, which was built in the 1960s, with studio and one-bedroom apartments.

The 10-acre property was formerly a Ramada Inn.

It has been rebranded Presidio Palms Apartments.

Sterling has been working on the project since January 2021 to change the zoning of the underperforming and functionally obsolete hotel to 212 apartments plus the development of an additional 154 units on excess land.

“Affordable housing is in all the headlines; we are excited to re-activate this property and deliver high-quality housing at an affordable cost for residents,” said David Zeff, Sterling’s president. “I think the residents of Tucson will be proud of this adaptive re-use project and its affordability.

“Residents can qualify to live in the lowest cost units with just $29,000 of annual income.”

Rents will start at $950 for the studios and pricing will be posted at presidiopalms.com when pre-leasing begins in April.

The median rents in the Tucson area for all types of rentals is currently $1,248 but rental prices in the downtown area average about $1,800 a month with some luxury complexes commanding more than $4,000 a month.

Presidio Palms will be a gated community with outdoor amenities such as a pool with cabana style lounges, barbecue area and a sand volleyball court.

There will also be a gym with cardio and weight training equipment, a yoga room, game room, a business center and a coffee bar and dog park.

Zeff said all areas will have Wi-Fi for residents.

The project received a 2022 Common Ground Award from the Metropolitan Pima Alliance for its engagement of the surrounding neighborhoods to address concerns about the proposed complex.

Tucson leads the state in apartment conversions by creating new dwellings in former hotels, office and churches.

The cooling off of new home construction, coupled with higher interest rates has tightened the housing market in the Tucson area and resulted in people renting for longer periods of time.

Rae's Place Downtown Market is one of the small businesses being affected by the Fox Tucson Theatre's renovation. Learn more about the grab and go market here.

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Contact reporter Gabriela Rico at grico@tucson.com