A Duluth couple building upscale housing space into an abandoned 19th Century hotel expects buyers will be interested in Downtown Duluth living.

Zenith City Revival LLC owners Mitchell and Michelle Holmes plan to build 12 loft-style condominiums inside the former Gardner Hotel at 12 N. Lake Ave. in Duluth’s Historic Arts and Theater District. The couple is calling it Building No. 12 Lofts on Lake, and said units will list for between $225,000 to $370,000 each. A storefront, street-level sales space is scheduled to open this spring.

Over the past two years, the Holmes’ have removed trash bins full of debris, installed new floors, repaired ceilings and sandblasted brick walls. The city of Duluth authorized permits for $835,000 in heating, ventilation and air-conditioning work in February 2015.

“We’re going slow, just making sure we get everything right,” said Mitchell Holmes. “They’re going to be very nice, upscale, smaller-size condominiums so people can afford them.”