Les Amis has teamed up with Andium to exchange the Hampshire Hotel site for more than a dozen flats.
The 'separate and dedicated' block of 13 apartments at the Limes is close to Green Street in St Helier.
12 of the one-bedroom flats will be for islanders with learning disabilities, with the 13th - a two-bedroom apartment - dedicated to on-call staff.
It follows the charity's decision to stop its Maison des Amis development, which would have seen a specialist centre for those with dementia and end-of-life care.
READ: Les Amis Pulls Out Of Building Residential Home
Shaun Findlay, Les Amis’ Managing Director, told us 'as they say, as one door closes, another opens'.
"In this case, 13 doors opened, and I couldn’t be more thankful to Andium Homes for all their help and support."
Peter Le Gresley, Regeneration and Placemaking Lead, Andium Homes says the Hampshire hotel site is a good addition to its portfolio.
"The acquisition of the former Hampshire Hotel site enhances our significant regeneration programme in the North of St Helier, delivering much-needed new homes for the Island.
"It demonstrates our commitment to creating vibrant, inclusive communities and homes our clients are proud to live in."

Les Amis has submitted a planning application for a new smaller, bespoke site, which will be able to house five people in a 'central location'.
Shaun Findlay says the charity wants to keep the location a secret, for now, until it hears more from the planning department.

New 'competitiveness' plan to protect Jersey's £3bn financial sector
Fines for 'Jersey Lifts' drivers a step closer?
£225K grant given for clinical trial into heart failure
New school grouping system to address pressures on Education
Jersey to nearly quadruple its protected waters
Broad Street turns a new leaf
Ministers unsupportive of legislation to protect cash-use
Woman, 44, guilty of inappropriately touching a teen at Portelet