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Built in the 1950s, Headrow House was most recently a HQ for Direct Line in the centre of Leeds.
When completed in 2028, the 190,000 sq ft project will deliver a supported communal living environment, offering managed homes for city centre living.
By reusing the historic building, the scheme will reduce embodied carbon by 78% and Watkin Jones will use sustainable landscaping throughout.
The planned building retrofit will enhance thermal efficiency and air permeability, using electric heating for net zero carbon, energy-efficient windows, and air source heat pumps.
Photovoltaic panels, efficient lighting, and energy-saving controls will optimise performance.
Headrow House will offer its occupiers a gym, shared kitchens and dining areas, a cinema, co-working lounge, library, laundry room and bicycle parking in addition to personal storage rooms.
Iain Smith, Planning Director at Watkin Jones, said: “We are very excited to announce planning approval for Headrow House, our first co-living project in Leeds.
The professional team includes SWAP Architects, building services engineer Atelier Ten and structural engineer Tier Consult.
