An old downtown Honolulu office building has become new rental apartment housing for households with low-moderate incomes.

A developer held a blessing Thursday for the project, which used a city affordable-housing subsidy program to help convert a seven-­story office building at 1060 Bishop St. into 52 apartments ranging from studios to two-bedroom units reserved for households earning no more than 80% of Honolulu’s median income.

“This project aims to address a critical need in our community by repurposing an existing structure for much-needed housing in the heart of Honolulu and revitalize our downtown community,” Robert Kurisu, principal of 1060 Bishop Street LLC, said in a statement. “We’re grateful for the opportunity to contribute to finding solutions to Hawaii’s affordable housing crisis through this new project.”

Monthly rents, which include utilities, start at $1,950 for studios with 281 to 391 square feet of living space. One-bedroom units that range from 372 to 581 square feet go for $2,089 per month, and 791-square-foot units with two bedrooms go for $2,506 per month.

Parking is not included in the building, but is available nearby for a fee, according to the developer.

The income limit for tenants equates to $78,000 for a single person, $89,120 for a couple, $100,240 for a family of three, $111,360 for a family of four and $120,320 for a family of five.

Initial tenants are expected to begin occupying 1060 Bishop in October.

The former office mid-rise represents the first use of a 5-year-old city affordable-housing subsidy program to convert a commercial building into residences.

Incentives under the program, which was established by Bill 7 in 2019, include relaxed development standards, a 10-year property tax exemption and no city application fees. In 2021 an additional benefit was added in the form of up to $15,000 per unit delivered.

The development firm led by Kurisu bought 1060 Bishop for $8.15 million in 2011 from Kamehameha Schools, according to property records, and initially planned to turn the building into a hotel.

To make way for the residential conversion, former tenant Hawaii Pacific University vacated space it had been using for faculty offices, a library and its athletic department. A 7-Eleven store and a UPS store remain on the ground level of the building, which dates to 1954.

Construction on the apartment conversion began in July 2023 and was completed in June. Changes to the exterior of the building are planned and expected to be finished later this year. According to building permits, the estimated value of the conversion work was $9 million.

Prospective tenants can find more information, including eligibility requirements, at 1060bishop.com.