The £50m rebuilding job will be delivered in three phases over more than four years.
The first involves demolition of the existing District Housing Office and the commercial units on Vicars Road to build 63 homes.
Residents will then be moved from the existing blocks into the new build accommodation, allowing the buildings to be demolished to make way for a further 140 homes.
The final phase at the northern most end of the existing Bacton Low Rise estate will see 87 homes built.
The development will be expected to achieve Code of Sustainable Homes Code Level 4.
Firms have until 4 February to complete PQQs, which are available on the council’s e-tendering website.