Newby has bought an office building in York city centre from Steamrock Capital which it plans to convert into 77 luxury apartments.
Ryedale House has been empty since it was vacated by the North Yorkshire Health Authority several years ago.
The seven-storey office building already has permitted development for residential conversion and sits within the Castle Gateway regeneration area.
Newby was set up in 2008 by the former directors of City Lofts.
Earlier this year it bought the nearby Cocoa Works, the former Nestlé factory on Haxby Road, which it also plans to convert to residential.
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