Dudley Council planners gave the go-ahead to plans to demolish the building in Enville Street, Stourbridge, and create the flats in its place.
The scheme by Stourbridge Community Development Trust will see a mixture of six one-bedroom and five two-bedroom apartments built along with a workspace on the ground floor.
When the plans were originally submitted, concerns were raised about the design of the proposed complex, prompting the developers to amend their proposal.
It also drew a mixed response from nearby residents during two consultation phases that took place.
Some were concerned that the three storey building would overlook their properties leading to a loss of privacy, the design was out of character with the area, inadequate parking and noise issues.
But the proposal also drew support from those who believe there is a need for affordable homes in the area.
After the amended proposals were submitted, there were still concerns raised by neighbours about the design but also support for the development to progress.
In the application, agents Accord Indesign said: “The proposals offer a new, modern, aesthetic which will contribute positively to the area.
“The intention is to transform the current derelict and visually unattractive site into a residential place offering a pleasant street experience.”
A planning officer’s report confirming approval has been granted said: “The proposed development will deliver sustainable residential development on a previously developed site of an acceptable design and form.
“The revised proposal is acceptable in principle, bringing back into use currently underused previously developed land, to provide new housing, in the public interest, in an appropriate and sustainable location.
“The proposed development is acceptable in design terms and is considered acceptable in terms of parking and highway safety. As such, the revised development proposals are therefore considered to be acceptable.”