The former Hallam Tower Hotel has gone on the national housing market, and is already generating “strong levels of interest”.
An improvement in the residential sector is raising hopes that the 12-storey tower and part of the grounds can finally be brought back into use - nine years after the hotel was closed.
Community representatives, who have been pressing the owners and the council to tackle the dereliction of the site off Fulwood Road, said they were “cautiously optimistic”.
Council permission has been granted for a redevelopment that would see the tower turned into apartments and townhouses built in the grounds, creating a total of 133 homes.
Now the Sheffield residential development office of Knight Frank has been appointed by Hallam Grange Ltd to launch the landmark 1960s building to the national property market.
Tearle Phelan, department head for Yorkshire residential development at Knight Frank, said: “The 2007 collapse of the residential market brought sales of land with residential development potential to a standstill across the UK, forcing many residential development schemes to be mothballed.
“This property’s release to the open market coincides with a significant improvement to the residential sector, and wider UK economy as a whole.
“Very few sites of this quality come to market in Sheffield, and following the recent national advertising campaign, it has already generated strong levels of interest.”
The hotel opened as the Hallam Tower in preparation for the 1966 World Cup and has been branded as a Forte Crest, Post House and Holiday Inn.
Mr Tearle added: “Recent government intervention, improvement in sales rates and general confidence in the residential market means the time is right to bring a new lease of life to this development site.
“This building has a fantastic history and the potential to lift it back to its former glory through the creation of a truly unique residential complex, could be massively beneficial to the city and to Fulwood.”
Sheffield-based Axis Architecture is working on the project.
A spokesman for a residents’ group that has been calling for action said: “We welcome the news that Hallam Grange wishes to sell the site, after a decade of inaction and neglect.
“We are cautiously optimistic that this is the first step towards seeing the immediate redevelopment of the site, the removal of this awful blight from our neighbourhood and the provision of much needed new housing in Broomhill. We look forward to working with Knight Frank and prospective new owners to ensure this happens.”