Queensberry Properties is building 36 flats ranging from one to three bedrooms on the site of former offices and workshops.
Queensberry Properties said that the exterior design of the three buildings at Bonnington Mill has been carefully considered to be in keeping with the surrounding architecture and to create a significant residential landmark.
The location is bordered by the banks of the Water of Leith on one side and Newhaven Road on the other, with many of them featuring a private balcony or terrace.
Residents will have access to a central courtyard with parking facilities, as well as an open space on the riverbank.
The first properties are to be ready for moving into during 2020.