Harlow Council is working on plans to completely revamp the Terminus House site.
The former office block had been used by London boroughs as temporary accommodation.
In 2018, the 13-storey building was turned into housing without the need for planning permission under permitted development rules.
The council said this contributed to a rise in crime and put pressure on local infrastructure.
Councillor Dan Swords, leader of Harlow Council, said: “We are building Harlow’s future and are on a mission to rebuild our town.
“This is a landmark moment, and our boldest property purchase yet, bringing another significant building and site which will come into council ownership.
“Our vision is clear: to create one of the best town centres in the UK – an exciting, dynamic space that serves people of all ages, at all times of the day.
“Redeveloping Terminus House is a vital step in restoring pride and unlocking Harlow’s full potential.”
The current owners are tasked with supporting all Terminus House tenants into alternative accommodation that they own.
The building must be vacant at the point of completion, with current tenants offered alternative places to live outside Harlow.
The council will only be able to support Harlow residents who meet its Housing Needs Register criteria.
Those placed in the building by other councils will not be eligible.
A competitive design process will soon begin, with architects challenged to produce proposals that reflect Harlow’s ambition and potential.
Cllr Swords said: “The regeneration of Terminus House is a vital part of our mission to rebuild our town. While we wait for the current owners to relocate the existing tenants outside of Harlow, we are wasting no time to prepare for its transformation.
“This will be a landmark development, and we are committed to involving residents every step of the way to make sure it delivers real benefits for our town, as we Build Harlow’s Future.”
Further updates will be provided as the project progresses.
