Number 27 to 29 Hagley Road - formerly The Arena - in Stourbridge has been sold for an undisclosed sum.
The site has been bought by Cinnamon Care Collection who have already built a luxury new care home called Parkfield Grange adjacent to the development site, which is due to open in May.
The plan is for the old nightclub – also once known as The Picture House – to be demolished for the construction of luxury apartments which will be linked to Parkfield Grange and share facilities such as a cinema, activities studio, hair and beauty salon, restaurant and cafe bar along with landscaped gardens.
There would be 34 one and two-bedroom apartments – most with balconies – fitted to the highest specifications including a large en-suite bathroom to the main bedroom, fully fitted kitchen, lift access.
Residents would also have 24-hour emergency response from the on site team.
David Reaves, marketing manager for Cinnamon Care Collection, said: “Cinnamon Care Collection will be investing a total of £20m across Parkfield Grange and the new retirement apartments to create a luxury retirement village.
"Parkfield Grange will deliver the very best care within the very best environment. It will offer exceptional residential, dementia and respite care.”
He added “The new development on the site of the old nightclub will offer independent living in one and two-bedroom luxury apartments with full access to all the shared facilities.
"The acquisition of this former nightclub shows the commitment of Cinnamon to Stourbridge, of regenerating the area as well as bringing in jobs.”
Harvey Pearson, director of Hexagon Commercial Property who announced the deal, said: “We are incredibly pleased to have completed this ‘off-market’ sale and delighted to help assist Cinnamon with their expansion plans for this impressive project. The nightclub has been seen by some locals as a blight on the area for some time so to see this kind of investment into Stourbridge is great news.
“As a local company we are very excited about the impact this will have for Stourbridge and we wish Cinnamon all the best with the venture.”
The care home will provide residential care along with a dedicated dementia care community.