McCaul Developments is to build 23 apartments and six town houses at The Point in New Islington, Manchester.
Part of the New Islington regeneration scheme, the project is the first for the family-owned developer in Manchester city centre.
Based in Astley, Greater Manchester, McCaul Developments has already submitted plans for Phase Two of the £15m scheme.
Phase one will be ready for release in August.
McCaul Developments bought The Point from Urban Splash in 2012.
The development, which was designed by renowned architect and Chairman of the Civic Trust Awards, David Prichard, is a partnership with New East Manchester and the Homes & Communities Agency through the Get Britain Building scheme.
Prices start from £110,000 for a one-bedroom apartment and the development has won approval from the government-backed Help to Buy scheme.
McCaul Developments director Sean McCaul said: "The development will provide contemporary and high spec homes in what is quickly becoming one of the most distinctive and diverse neighbourhoods in Manchester.
"New Islington is a fantastic scheme in a stunning waterside location which is attractive to young professionals, couples and families.
"Furthermore, we are delighted to receive Help to Buy approval for The Point. The new government scheme will provide a much-needed shot in the arm for the house building sector and offers an excellent incentive for people to get onto and move up the property ladder."
McCauls has a number of developments in the pipeline including housing developments in Astley, Manchester and St Helens.
McCauls was advised by a team of lawyers led by Stephen Lintott, head of real estate at Manchester law firm Pannone.