A disused office block once used by West Yorkshire Police will be transformed into housing.
Property investors Paul Rothwell and Emma Thompson will convert Fell House in the city centre into 32 one-bedroom flats.
Mr Rothwell, managing director of Empire Property Concepts said: “This is a building which has been stood empty and we are looking to modernise it to transform it from quite an uninspiring building into a great place to live.
“We generally buy commercial buildings such as old offices and add value by refurbishing them and renting them out as self-contained flats, rather than converting existing residential properties.
“This latest project will go towards meeting the growing demand for housing and attract people into the city centre.”
The 1960s building was previously used as police offices before being purchased for redevelopment.
Improvements will also be made to the outside of the four-storey property, on George Street, including the fitting of new window panels.
Once complete, the flats will be let out to renters.
Finance lender Together is providing a total of £806,000 towards the cost of purchasing and developing the site.
Barry Dillon, regional development director for Yorkshire, said: “At a time when there is a severe shortage of housing across the UK, this redevelopment is one project which will provide more than 30 affordable rental units.”