Residents of the 300 Building at the corner of 6th and Pine have been informed that the 10-story cast concrete and brick building will be converted to a hotel.
The new owner of the building is Chestnut Center Partners, LLC.
Chattanooga has been seeing a hotel boom. County Mayor Jim Coppinger said six were under construction, including the Westin, which recently opened.
One long-term resident of the 300 Building noted, "This means that the last truly affordable large-scale market rate apartment housing option in City Center proper just went away."
The Sixth and Pine building was completed in 1965.
The Episcopalian Diocese owned it first, then the Catholic Diocese sold it when they were faced with expensive repairs.
It was acquired by developers Clark, Hudson and McKenzie, who made major repairs and converted it to apartments.
The 300 Building recently sold for $6 million. The adjacent parking lot was sold for $2,025,000.