The Whangarei Quest - a 3400sq m, multi-million dollar complex to be built over four floors - would be the 20th purpose-built operation in New Zealand and would contain 34 studio, one-bed and two-bed serviced apartments with five retail stores.
The en-suite apartments would be built over two floors above the retail space, with a reception area on the ground floor and 13 car parks for guests beneath. The retail space was being marketed by Auckland-based investment management firm Jones Lang LaSalle.
Whangarei firm Arco Group won the building contract in July for the project, which is being led by Auckland's Canvas Investments.
Arco has also completed other work in Whangarei, including the HUB Town Basin project, Farmlands Kamo, the Northland Orthopaedic Centre and new Mitre 10 Mega.
CEO of Canvas Investments Murray Alcock said the beginning of construction "was the realisation of a long-term vision". "This site has been destined for renewal for many years and we are delighted to be able to partner with Quest Serviced Apartments to give the city a different type of accommodation facility."