The former government tax office, Swinson House, on Piccadilly, was granted planning permission in 2020 to redevelop into a new hotel and an operator will be announced shortly.
The total gross development value of the project - an estimate of its value once it is complete - is in excess of £25m.
The 35,000 sq ft building was formerly an office for HMRC but was vacated because it was outdated and no longer fit for purpose.
The deal follows other high-profile acquisitions and projects in recent years by North Star including a number of buildings in York, a residential development site in Sheffield city centre, and a large office building in Plymouth.
The building sits within City of York Council’s Castle Gateway masterplan which will see the whole area rejuvenated with new public realm and development.
A spokesperson for North Star said: “This is a great opportunity to regenerate this strategic site in York city centre with a high-quality hotel development. We are in advanced discussions with a leading hotel operator which we will announce shortly.
“This purchase further underlines our commitment to investing in and improving York city centre, where we are proud to have our headquarters.”
The funding for the purchase was arranged by Ice Cubed Property Finance.
It was purchased for an undisclosed amount.