Development of the former Aquarena swimming pool site could start soon after the sale of the land was completed this week.
Roffey Homes has taken formal ownership of the site from Worthing Borough Council.
Council leader Dan Humphreys said: “This is a big step forward in what is a major redevelopment for the town.
“I’m confident that Roffey will soon start work on delivering much-needed new homes including affordable apartments for shared ownership and rent for our residents, as well as creating commercial space and a seafront cafe and public open space which will complement a thriving and vibrant seafront community.”
Temporary parking at the Aquarena, used mainly by those using the neighbouring Splashpoint Leisure Centre, has now stopped.
South Downs Leisure Trust, which operates the centre, has reminded motorists that discounted parking in Beach House Grounds is still available.
The council is also taking steps to provide a new public car park on the disused tennis courts accessed via Lyndhurst Road.
Planning permission for the redevelopment of the site to provide 141 homes including a 15-storey tower, a seafront cafe block to include 141 homes and commercial space was granted by Worthing Borough Council earlier this year.
According to Roffey Homes’ website the new development will be called ‘Bayside’.