The former Nesting School will be turned into a multi-function space featuring a gym and workshop.
The building and surrounding land in Vassa, South Nesting, has been acquired by the Community Development Company of Nesting (CDCN) charity.
It marks the first time property has been obtained from Shetland Islands Council (SIC) using new asset transfer legislation.
CDCN chairman Dougie Stevenson said: “We’re really pleased to be able to take ownership of the Aald Skül and have great plans to use it for the benefit of the local community in Nesting.”
The group is looking to hire a development worker to help deliver the plans, which include a space for childcare.
SIC development committee chairman Alastair Cooper said: “This is the first time we’ve been able to successfully conclude a formal request by a community group for the transfer of assets.
“This is a great example of community empowerment in the spirit of the legislation, and demonstrates how communities can help themselves to realise their aspirations.
“I wish the group well for their future projects and all that they will do to contribute to the thriving community in Nesting.”
The transfer was made using part five of the Community Empowerment (Scotland) Act 2015.
The legislation introduced a right for community bodies to request assets from councils if they feel they could make better use of them.