The Woodlands at Belmont Hill, a 121-unit luxury townhouse development by Northland Residential Corp. in Burlington, is one of three projects that are part of the redevelopment of the McLean Hospital campus.

A master plan approved by Belmont voters more than five years ago to sell off and redevelop parts of a hospital campus is moving forward.

Northland Residential Corp. of Burlington purchased 26.8 acres from McLean Hospital for $14.7 million last month. The developer plans to create 121 luxury townhouses on the site.

The sale of the land is part of a master plan that McLean Hospital, which intends to maintain its core campus, crafted with input from Belmont officials. The master plan was approved by Town Meeting in 1999.

Known as The Woodlands at Belmont Hill, the luxury townhouse project was approved by the town’s Planning Board in December 2001, according to Timothy D. Higgins, Belmont’s senior planner and project manager for the McLean Hospital redevelopment.

But opposition from a neighborhood group helped stall efforts to get the project off the ground.

The Belmont Citizens Forum, which raised a variety of concerns about the project, recently negotiated a settlement with the developer. As part of the settlement, Northland agreed to contribute a reported $300,000, which the Belmont Citizens Forum can use for whatever improvements it chooses.

In addition, homeowners at The Woodlands will make an ongoing contribution to the group as part of its condo fees, said Lynne Pedersen, Northland’s vice president and director of sales and marketing.

‘A Beautiful Location’

Designed by Jim Velleco of Grazado Velleco Architects in Marblehead, The Woodlands at Belmont Hill will involve the construction of 111 new townhouses. Three existing buildings on the site will be converted into 10 condos.

The Upham House, a building featuring a grand staircase and ornate fireplaces that was once used by people struggling with stress and mental health issues, will house five condos.

“The building was very glamorous in its day and we are hopeful we can restore [it],” said Pedersen.

Another building that was used in the 1800s as stables and most recently by the hospital for equipment storage will feature four new condos, and a cottage on the site will be converted into a single townhouse.

Prices for the homes, which will range from approximately 2,300 square feet to 3,100 square feet, will start at just under $1 million.

Pedersen said the project likely will draw homebuyers from Belmont and surrounding towns – including Lexington, Cambridge and Winchester – who are seeking maintenance-free living.

According to materials provided by Northland, the target market is empty nesters, retirees and dual-income professionals who want to live close to Boston and Cambridge.

Pedersen counts the project’s proximity to Boston and the hundreds of acres of wooded land surrounding the development site as major selling points. “Where can you live seven miles from town and feel like you’re out in the country?” asks Pedersen.

The luxury condos will fit in well in Belmont and are likely to sell out quickly, predicted Higgins.

“I’ll be very surprised if they sell for less than $1 million,” Higgins said. “It’s a beautiful location … The housing will be surrounded by dedicated open space.”

He also expressed confidence in Northland, noting that the company was going to produce an “excellent product.”

“Everyone’s going to be pleased when it’s done,” Higgins said.

As in other communities in eastern Massachusetts located inside Route 128, housing prices in Belmont have soared over the last few years. The median selling price for a single-family home in Belmont was $675,000 last year, a 38 percent increase from four years ago when the median selling price was $489,000, according to statistics from The Warren Group, parent company of Banker & Tradesman.

Higgins said Belmont doesn’t have a lot of land available for development, but in recent years many homes have been torn down and rebuilt into larger, more expensive residences. Last year, the town passed a moratorium on tear-downs that is set to expire in May.

Northland’s project is part of a three-way development plan for the land the hospital is selling. The hospital plans to sell about 25 more acres to American Retirement Corp., a Tennessee-based developer that wants to build a 486-unit senior housing complex; and Belmont Value Realty, which is planning to create a research-and-design facility.

McLean Hospital also has agreed to deed 105 acres to Belmont, and the town will hold a conservation restriction on another 20 acres that will continue to be held by the hospital, said Higgins.

Part of the land will be used for a new town cemetery. “Our existing town cemetery is at capacity,” said Higgins.

Town officials are eager to see the master plan and the development projects move forward. “We look at it as a plus,” said Higgins, noting that the new development will produce tax revenue, while the master plan will create open space.

“It’s a shame that a few residents have fought this Â… and delayed the benefits [to the town],” he said.

Aglaia Pikounis may be reached at apikounis@thewarrengroup.com.