The former Sheffield Star and Sheffield Telegraph offices on York Street are set to become a student residential block with 259 bedrooms.
There will be 211 en-suite apartments and 48 studio flats as choice of accommodation within the new development.
OakNorth Bank have completed a £33m deal with Mabec Property to allow the scheme in the centre of the city to move forward, with another similar development running alongside in Nottingham.
Mabec's directors, Mark Cavell and Mark Elliott said: " “With over 50,000 full-time students within each city, both are in desperate need of more purpose-based student housing developments.
"That’s why we’re delighted to be bringing some much-needed new student accommodation to these cities in two iconic locations.
“A key reason for us choosing OakNorth was because we needed the transaction to be completed quickly.
“The team have an excellent understanding of the market and both regions and were prepared to work just as hard as us to get the deal done.”
Mabec’s two directors have over 60 years of property experience, with almost 35 joint projects under their belt.
Mabec Property is backed by Toscafund and Penta Capital, and places its focus on residential development and investment in the Midlands, including the student letting market as well as mixed use projects.
Surinder Sidhu, debt finance director at OakNorth, said: “We’re delighted to have supported Mabec on this transaction.
“The team led by Mark Cavell and Mark Elliott have successfully completed dozens of projects in a relatively short time-frame and continue to expand their portfolio across the UK.
"Their innate drive and ambition has helped them secure backing from some of the UK’s most notable private equity and investment management firms – both of whom will continue to play significant roles in the company’s future success.”
Plans to turn the Sheffield city centre offices of The Star into 283 flats were put before Sheffield Council planners a year ago.
Proposals then were to convert the building on York Street into a development with studio apartments spread across all five floors, covering more than 100,000 sq ft.
Earlier in 2017, Johnston Press, that publishes The Star and Sheffield Telegraph, sold the property for £3.6 million.
Sales and editorial staff moved to their new home at The Balance, a multi-storey office facility on Pinfold Street, a year ago.