Plans by Gaterule Ltd to redevelop the southern side of Lavington Street - between Ewer Street and the Premier Inn - have won the unanimous backing of Southwark's planning committee.
The scheme has been designed by Allies & Morrison whose offices are just a few yards away on Southwark Street.
The proposed development includes a 10-storey office block as well as 173 flats in three buildings of eight, 13 and 21 storeys, as well as three three-storey mews houses.
"Officers consider that the scheme exhibits a high standard of design which would be a positive addition to the area," said planning officer Terence McLellan.
Architect Artur Carulla told the committee that the scheme would "redevelop a substantial site at the heart of Bankside".
"This is probably the last opportunity for urban regeneration at this scale north of the [railway] viaduct," he said.
Of the 176 homes in the development, 21 are proposed as social rented housing and 13 as shared ownership. In addition, the developer has agreed to pay the council £7.725 million in lieu of meeting its full obligations for on-site affordable housing.
Cathedrals ward councillor David Noakes addressed the committee to object to the scheme's height, density and failure to deliver 35 per cent affordable housing on site.
For the latest local news and events direct to your inbox every Monday, you need our weekly email newsletter SE1 Direct.
7,000+ locals read it every week. Can you afford to miss out?
Read the latest issue before signing up