A 10-storey building is to be built on a 2.2-acre site, bounded by Bromsgrove Street, Gooch Street North, Kent Street and Henstead Street.
It will have 262 apartments (mainly one and two-bed) for the private rented sector (PRS), which may increase to 279 units, subject to planning consent for the additional 17.
Nobles Construction begins work for developer High Street Residential in early February and is expected to be completed in June 2022.
The Cording Real Estate Group, a member of the Edmond de Rothschild Real Estate investment management platform, has agreed a £49.7m forward funding deal for the development.
High Street Residential hopes that work will then start on a neighbouring 19-storey building on Kent Street next year, bringing the number of apartments available to over 500 by 2023.
High Street Group chairman Gary Forrest said: “Birmingham is undergoing significant regeneration and represents a great place to invest. Local demand for professionally managed, purpose built rental accommodation is rising quickly and to meet this we are creating high quality living spaces, future proofed through the use of the latest smart technologies. There will also be communal relaxation facilities, where people can meet, form friendships and build new communities.”