The site on Agard Street is currently a surface level car park that was acquired by regional property development company Godwin Developments.
Godwin plans to build 142 studio apartments to accommodate students from the University of Derby.
Associate director Gurdeep Gill said: “We are excited to develop this site which will be the perfect location for students, as it’s just a stone’s throw from the University of Derby’s law school.
“As developers, we work closely with universities to ensure our developments contribute as much as possible to improving the wellbeing of students. The property will be designed to encourage social interactions as students are now looking for an environment that has a sense of community and provides both private and social spaces.”
Godwin Developments now has three million square feet of development space across the UK totalling £600m in gross development value.