The owners of Edenburn House have denied reports it is to house Ukranian refugees.
In a statement issued on their behalf by McQuinn Property Services, they say "any statements to the contrary are inaccurate".
The Department of Integration said it had received an offer of accommodation for "beneficiaries of Temporary Protection" at Edenburn House.
The 18th century former hospital in Ballymacelligott was sold to a private buyer for €1.1 million last September, and had since been refurbished.
This morning, McQuinn Properties issued a statement on behalf of the landlord of Edenburn House denying the Department of Integration's claim.
It says they wish "to reiterate, as previously confirmed in [their] statement in January, that the property will be let on the open market".
The statement continued "prospective tenants are now invited to submit their interest in viewing the apartments once works are completed".
They say the renovations are still "some months" from completion.
