The site will be developed into a 12-storey Locke aparthotel operated by Edyn Group.
The scheme will consist of 103 units, office space on the mezzanine level and a ground-floor restaurant.
The aparthotel will be located at Buckle Street, near to Aldgate East station and the new Crossrail station at Whitechapel.
This is the second significant development that OakNorth Bank has funded in the area within the past year.
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The bank provided a £16.5m property finance facility to WMG Group last year to develop a residential-led, mixed-use 17-storey building at the corner of White Church Lane and Commercial Road.
Merzak Kaddour, investment director at Edyn Development Studio, said: “Our decision to work with OakNorth was driven primarily by the strong relationship I have with the debt team and the depth of knowledge displayed by OakNorth’s team in structuring this facility.”
Deepesh Thakrar, senior director of debt finance at OakNorth Bank, added: “This was an exciting opportunity to work with a highly experienced team with one of the most notable track records in the industry.
“We look forward to working with them in the future as they continue to grow their UK portfolio.”