CLEVELAND-The first residents have started to move into the first phase of Saint Luke’s Manor, a $53 million renovation of the former Saint Luke’s Hospital. The 85-year-old building is being turned into 136 seniors housing units and possible office space for non-profits corporations.

Philadelphia-based Pennrose Properties started the move in this past week for the first phase, which includes 71 under-market rate apartments in the central portion of the U-shaped building. The second phase in the west wing will include the rest of the apartments, and the east wing will include the office space, being redeveloped by Neighborhood Progress Inc.

The NPI group had proposed a $70 million condo, townhouse and single-family homes project for the grounds of the building back in 2002, in partnership with Dillin Development Corp. However, Ryan Bailey with Pennrose tells GlobeSt.com that the project was changed because of the drop in the condo market. “NPI had been looking then to do market-rate apartments, but that didn’t go through either,” Bailey says. “We bought the first two phases of the project from NPI, but they still have a small partnership in the entire project.”