The former Jaguar showroom site at Derby Road and Radmarsh Road is located next to the University of Nottingham campus.
Unite said the total development cost would be £57m with the project now due to open in time for the 2023/24 academic year.
The development will target a BREEAM Excellent rating and net-zero carbon in operations through optimised design, integration of solar panels and an all-electric heating solution, including air-source heat pumps.
Nick Hayes, Group Property Director, said: “We are delighted to have secured planning approval for this exciting development, which allows us to deliver high quality, student accommodation that complements the surrounding area.
“The University of Nottingham is one of the UK’s leading Universities and we are delighted to support their future growth.
“The development reflects our strategy of increasing our alignment to the strongest Universities and will help to deliver operational efficiencies through greater scale in Nottingham.”