Work is due to start this summer on building 62 new homes on part of the former Moor Hospital site in Lancaster.
The scheme, known as Moor Park, is on a former NHS depot site in Quernmore Road and includes 42 houses and 20 apartments as well as a retail unit, on behalf of developers PJ Livesey Group.
The land was previously owned by the Homes and Communities Agency.
Leeds-based Brewster Bye Architects designed the scheme, which was given the go-ahead by Lancaster City Council in April.
Work to demolish the vacant out buildings and maintenance sheds and replace them with new homes will start this summer and follows the huge success of the award-winning neighbouring development by the same developer, known as The Residence.
Brewster Bye’s managing director Chris Austin said: “This is the third phase of development on this incredibly popular site and we have worked hard to deliver a scheme that complements the existing homes.”
Improved playing fields and a local convenience store will be delivered as part of the re-development of Moor Park benefiting the new homeowners as well as the wider local community.
P J Livesey are also carrying out works to turn a disused cricket pitch adjoining the site into usable recreational space and a wildflower meadow.
Mr Austin added: “All the individually designed homes have been created to fit in with the character of the site and the location on the edge of the Bowland Fells.
“They follow a strong design principal and reflect elements of the materials and style of the old hospital building.
“The homes are generally traditional in design with sympathetic contemporary elements.
“The combination of large gardens and generous green space along the access road and around the apartments makes the most of the mature landscape setting and gives the whole development an established atmosphere.”
Group land manager Steve Alcock said: “We are delighted to be delivering these new homes in a very popular area. The store was a key request in extensive consultation with the community and there has been strong interest from suitable occupiers.
“As part of our commitment to maintaining open, usable space in the local area we will contribute a significant sum to the local authority to carry out work on the Far Moor playing fields that sit behind the main hospital building.
“At the moment they are so poor they can only be used once a week and they need improved drainage. The plan is to create two smaller junior pitches and one full sized adult pitch that can be used more regularly.
“Improvements to the cricket pitch will be carried out at the start of the project at the same time as demolition of the existing buildings.
“Lancaster Moor demonstrates the level of quality and care taken by the company and that will be reflected in the Moor Park scheme which we believe will be a huge asset to the community.”