Work has begun on converting the former Greyhound pub on Pitt Street in Newcastle.
The once notorious public house has been empty for several years. Planning permission was granted to turn the building into 14 studios for student tenants in 2013.
A previous planning application for 17 studios was turned down.
However, a re-submitted design by 3E Investments Ltd was granted permission and the developers hope to attract Newcastle University Business School students as residents.