Steven A. Markel, an early investor in the project and vice chairman of specialty insurer Markel Corp. in Henrico County, said he views the project as an investment in the Better Housing Coalition and the greater community.

“It became clear during the course of our discussions that this development could be a game-changer for working families in our city,” Markel said.

The project will have about 30,000 square feet of commercial space.

“I would envision some retail, but that is to be determined,” Harris said.

New construction will go up along the side streets and West Marshall Street. It most likely will include a swimming pool. The hotel has a pool, but it is in an upper parking deck, “which is an odd location,” Harris said.

More than likely, the parking deck will be razed and more apartments will be built behind the hotel.

Plans are in the preliminary stage, since most of the focus has been on securing the property and putting together the nearly $6 million in financing to purchase it, she said. Local and out-of-town developers were competing for the property.

“We think we will have 175 to 225 apartments,” Harris said.