The investor has lodged plans with the city council to convert the vacant top three floors of 50 High Street into coliving accommodation.
The scheme has been designed by Corstorphine & Wright, with planning support from DLP Planning.
The lower floors are still used as retail and include tenants Sports Direct, Poundland, and the British Heart Foundation, with the basement level used for storage.
Located in the city centre and close to the tram, buses, and railway, it is also only a five minute walk to Sheffield Hallam University’s city campus.
This led to the site being approved for conversion into student accommodation in 2018, which has now lapsed.
Tellon intends to create 184 bedrooms, within a mix of cluster apartments and studio units. There will also be amenity and communal spaces for residents, such as workspaces.
A vacant retail unit on Arundel Gate will be the main access point for the development, with another one on Mulberry Street.
A void will be created within the centre of the building, above the retail levels, to allow natural light into the building and to create an open-air area communal space at first floor level.
The works will also include improvements to the public façades facing Arundel Gate, Castle Square, and the High Street, as well as updates to Mulberry Street.
Private, outdoor space will be provided on the first floor level, with the area formed by the new void providing an open courtyard.
The upper floors of the department store have been empty since 2013.