The project will see the existing Hudson House site at Toft Green redeveloped into a four-block scheme of 127 flats, and offices totalling around 133,000 sq ft.
Leading Leeds-based architects Fuse Studios has designed the buildings which will be located close to York Railway Station.
The brick clad building will rise to seven floors. Turner and Townsend is cost consultant for the projects with Leeds firms Roscoe and Couch Perry & Wilkes Partnership providing structural and M&E design respectively.
Neil Sinclair, the Chief Executive of Palace Capital, commented: “Hudson House was part of the Sequel Portfolio which we acquired from Quintain in 2013 and where we already have two other planning approvals.
“We are very excited about the prospects for this site and now we have consent we will be focusing on how best to maximise shareholder value while limiting the risk to our company.”