Residents are excited for the Bendigo building in Bath Street to be demolished and for new flats to be created.
The Nottingham City Council approved a scheme for building a 13-storey tower block to help with the rise of the number of students in the city.
Previously a Royal Mail sorting office, the building has been vacant for 20 years.
Dave Smith, 56, who lives near the city centre, thinks the building is in desperate need of sorting out.
He said: "It's been vacant for ages and just looks derelict. It's incredibly ugly, they need to demolish it and start again.
"I can see why it's becoming student accommodation, it's a prime site."
The new development will have 692 beds and a landscape garden with outdoor seating.
Another resident, Robert Lea, 70, also thinks the development is a good idea.
He said: "It's really accessible for students, it's close to the universities and the building won't be out of place.
"It's not going to mask anything, it's great."
Lolwah Alsharaf, 31, who lives next to the building at Marco Island, thinks it'll make the area look better.
She said: "I think it's a good idea, it'll impact my life as well. It'll look nicer and I think it's worth changing.
"It might have been better as private flats, so everyone could rent.
"But I think it'll be great."
Godwin developments says the scheme will include a mixture of modern studio apartments, accessible studio rooms and four, five and six-bedroom clusters.
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