The work began at a £600,000 60 bedroom care home in Clifton Moore, near York.
Lime Tree is scheduled to open in 2026 and will offer housing, dementia, rest and day care.
The nursing home, located off Shipton Road in Clifton, is being developed for Yokare Holmes by Yorkshire and Lincolnshire-based construction company Hobson & Porter.
Marking the ninth collaboration between businesses, the new facility will be Yokare's 16th care home across Yorkshire and Lincolnshire.
It began at the end of 2024 to destroy the Lime Tree Medical Center, which previously occupied the site.
As part of the development, Yorkare gave plots of land to nearby York Sports Clubs, allowing additional pitches to be created.
Nicola Anderson, Marketing and Community Engagement Manager at Yorkare, said:
“Our development will turn unused sites into lively spaces, providing much-needed housing care to the Clifton area of York and beyond, while creating around 80 new jobs.
“The fact that we have been able to contribute to providing important community sports facilities at the same time is a victory for everyone.”
Lime Tree has 20 private rooms on each of the 3rd floors. One floor will focus solely on dementia care and ensure special support for those in need.
The home has a variety of communal spaces and amenities, including two bars, a dining room, a beauty and beauty salon, a cinema, a bowl, a greenhouse and an outdoor terraced balcony.
Richard Hunter from Hobson & Porter said:
“Last summer, we completed the company's eighth project within 10 years – Huxby Hall.
“Huxbee's £10 million 63-bedroom care home is extremely popular with residents and we are sure the lime tree will be just as successful.”