Grainger, the UK's largest listed residential landlord, has conditionally agreed to forward purchase the private rented sector (PRS) development in Leeds city centre for £40m from YP Real Estate.
The scheme will have 242 apartments over 18 storeys and is expected to complete in 2019.
The building used to be the headquarters of the Yorkshire Post newspaper.
The forward purchase agreement is conditional on the vendor securing final detailed planning consent for the scheme and completion of the development.
Grainger chief executive Helen Gordon said: "We are pleased to announce this sizeable PRS build-to-rent acquisition that will deliver 242 new, purpose-built rental homes in Leeds city centre. Leeds is a vibrant city which holds all the key characteristics of our PRS investment strategy, including a large professional workforce and significant economic growth potential."