Archaeological and enabling works have started with the joint Igloo Regeneration and Places for People scheme expected to be complete by Autumn 2021.
The Ironworks scheme will be a key part of Holbeck Urban Village in the emerging South Bank of Leeds.
Once the crucible of the Industrial Revolution in the city, the area boasts significant landmarks of heritage architecture.
The mixed-use development will see the waste land off David Street transformed into 53 apartments, 15 town houses and two commercial units complete with an under-croft car park, partially funded by Homes England.
Stuart Leslie, divisional director of Esh Build in Yorkshire, said: “We are very proud to have been appointed as principal contractor to deliver such an exciting scheme. Esh Construction, Igloo Regeneration and Places for People hope this scheme will encourage further residential developments and unlock the area’s potential.”