The plans for downtown Sacramento’s tallest residential tower have dramatically changed.

Southern Land Co., a Nashville, Tennessee-based developer, said Tuesday it was removing a planned office tower from its project at Third Street and Capitol Mall, also known as Lot X.

Instead, Southern Land now plans to construct two high-rise apartment buildings: a 26-story tower with 263 apartments and a 14-story tower with 154 apartments. The firm also plans to build 21 townhomes on N Street facing Crocker Park.

An earlier plan for the development included a 32-story apartment tower and a five-story office tower on the site. The updated plans, filed this week with the city of Sacramento, add more than 150 residential units to the project.

“From the beginning of our work on Lot X, we’ve been driven by the vision of a vibrant downtown Sacramento,” Tim Downey, Southern Land’s founder and CEO wrote in a company news release. “As we all know, our live-work habits have changed tremendously over the past few years and, after evaluating continued trends in workplace culture and the needs of Sacramento, we felt it was best to go all in on bringing spirited, refined living to downtown. We cannot wait to share more of this updated vision and get to work on creating an unrivaled living experience in Sacramento.”

Southern Land also plans to build 11,000 square feet of retail space combined in the two high-rise buildings, as well as an eight-story parking garage.

Office space is not being completely removed from the plan; the 14-story tower “is expected to include office or flex space,” according to Southern Land’s news release.

The firm said it expects to begin construction on the project in the second half of 2023.