DETROIT (CBS DETROIT/AP) — A historic building that featured a former movie theater in Detroit will be redeveloped into affordable housing.

The $75 million project at the United Artists Building was announced Thursday by Mayor Mike Duggan and other city leaders.

READ MORE: Ferndale Schools District Reinstating Face Masks Starting This Week

The project is led by Detroit-based, African-American-led development Bagley Development Group and will turn into the Residences @ 150 Bagley.

The building is expected to open in late 2023.

The historic building will retake its rightful place as a gem of Detroit’s skyline. (credit: Hobbs + Black)

“My partners and I are honored to develop Residences @ 150 Bagley in such a vibrant, downtown community,” said Emmett Moten, the group’s managing partner. “Residences @ 150 Bagley represents the perfect model for urban development, with the public and private sectors working collectively to benefit the community.”

The nearly 100-year-old building will have 148 apartments and retail and dining space when it opens late next year, the city said.

READ MORE: Ford, GM, Stellantis Reinstate Masks At Facilities In Areas With 'High' COVID Risk

In addition, one- and two-bedroom units will be up to 1,300 square feet. The redevelopment will also create about 10,000 square feet of retail and dining space along Bagley Street.

City officials say 20% of the units will be reserved for affordable housing at 80% area median income.

In addition to market-rate and affordable apartments, the renovated building will feature about 10,000 square feet of street-level retail and dining space along Bagley Street. (credit: Hobbs + Black)

“For nearly half a century, the United Artists Building has been one of our city’s iconic images of blight and abandonment,” he said. “Today, just like we are doing with Michigan Central Station, Fisher Body 21, Lee Plaza and others, we are giving the United Artists Building new life, and turning blight into beauty.”

The project received a $43 million Housing and Urban Development multifamily housing loan, $8.5 million from the Downtown Development Authority, $7 million from the Michigan Strategic Fund and $3 million in federal Community Development Block Grant funding, according to the city.

MORE NEWS: Bank Of America Report Shows A Competitive Homebuying Season

The 18-story building was designed by Detroit architect C. Howard Crane and opened in 1928. It has been mostly vacant for almost five decades.

© 2022 CBS Broadcasting Inc. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed.