Robertson Northern has been appointed by the Highland Council to deliver the £3.6 million scheme, which will see 31 new apartments developed on the site of the former Inverness College.
Construction work is now underway and completion is scheduled for December next year.
Frank Reid, managing director at Robertson Northern, said: "This development will breathe new life into the former college grounds and help meet the need for more affordable homes in Inverness.
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"The planned works will help transform the existing space into a thriving community area with beautiful homes and great communal spaces. The extensive works planned for the wider Midmills site will help to reinvigorate this historic and desirable area of Inverness."
Cllr Helen Carmichael said: "The new apartments at Midmills Campus will be a great addition to the range of housing we are able to offer to people in Inverness and the surrounding areas.
"This particular development of 31 properties for rent by the Highland Council will be available for people aged 55 or older."
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