The project is being delivered by North Midland Construction (NMC) Group and Victoria Hall Management on Denby Street.
It marks the fourth scheme the two companies have worked on together, with work starting earlier this year on a £24m student development at an adjacent site.
The latest site near to Sheffield United Football Club's ground will contain an 11-story building featuring 190 en-suite bedrooms as well as 40 apartment clusters, each including a kitchen and living area.
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Nick Banks, operations director of NM Group's building division, said: "Work is underway to excavate and prep the site, ready for building works to commence. This was previously an area of wasteland and we are looking forward to transforming it over the next 14 months ready for Sheffield's thriving student community.
"It's great to embark on our fourth major student accommodation contract with the team at Victoria Hall Management – stemming back to our first partnership in 2015."
John Ripley, National Operations Director at Victoria Hall Management, added: "Sheffield is a fantastic University city and has been on our radar for some time. We are delighted to add such a prestigious development to our ever-growing portfolio of sites throughout the UK."
(LM)
