Barking's Wetherspoons pub is to shut while building work takes place on a 28 storey development.
Be First confirmed a number of parties, including the pub chain, had reached agreement regarding the redevelopment of Trocoll House.
The new tower will accommodate 198 build-to-rent and 'affordable' apartments, according to the council's regeneration arm.
The restoration of Barking station, which is next to the site, will keep its Grade II listed canopy based on Roma Termini station in Rome.
Council leader Darren Rodwell said: “This agreement means a tired, tatty old building will be replaced providing nearly 200 new homes for local people.
“This development, alongside a restored and improved station, will create a great new gateway to Barking."
Railpen, the investment manager for the Railways Pension Scheme, has entered into a funding deal with real estate specialists Revenue + Capital and developer Fifth Capital for the project.
Work is set to begin by Easter and a Wetherspoons spokesperson told the Post that the Barking Dog would shut at the start of April.
They added: "All of the pub team will be relocated while work takes place and there will be no job losses."
Be First said the project will take two years to complete.
The Wetherspoons spokesperson said the pub chain will then reopen the Barking Dog and "it will be larger in size and the layout will be improved".
A planning application including 35 per cent 'affordable' homes was given approval in 2019.
On completion, the entire building will be leased by the council for 50 years and the freehold acquired for £1.
The deal was negotiated by Be First, which said it pulled the deal together with the other parties.
Ed Skeates, development director at Be First, said: “This site is directly adjacent to Barking Station and the new building will transform the experience of people coming into and out of the town centre and will also be an amazingly convenient and vibrant place to live for our residents.”
Marc Pennick, chief executive of Fifth Capital, added: “Fifth Capital is excited to be working on such a key regeneration project in Barking.
"The development with revolutionise the local area and provide high quality housing for the borough.
"We look forward to continue working with Barking and Dagenham Council and delivering this scheme."
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