Construction on the Park South apartments is slated to begin in 2014.

ALBANY-Seven years after multifamily was announced as the first component of the Park South redevelopment plan in the neighborhood surrounding Albany Medical Center, the hospital and city officials unveiled plans to build apartments. The $110-million investment by Albany Med and Tri City Rentals will result in two large mixed-use commercial and residential buildings on New Scotland Avenue here, adding 251 new market-rate apartments on land currently owned by the hospital.

Albany Med will lease a substantial portion of the land it owns to locally based Tri City Rentals, which owns and manages apartment communities across New York State. Construction is projected to begin early next year, and to be completed by the end of 2015.

“The project that we are announcing today is a promise kept,” James Barba, Albany Med’s president and CEO, said Tuesday. “Nearly 10 years ago, city leaders, based on significant public input, laid out a vision for rejuvenating an area of Albany that had over many years deteriorated to the point of putting the welfare of the community at risk. In reviewing that plan, Albany Medical Center pledged to do its part to make it a reality.”

Approved by Albany’s Common Council in 2006, the Park South Plan for the Future entails redevelopment of two blocks bordered by Myrtle and Dana avenues and Robin Street and New Scotland Avenue. Although the onset of the recession stalled development of the apartments, Barba said Tuesday that the hospital’s efforts have resulted in more than $500 million in public and private investments, helping to attract several new retailers to the area.

Since ’06, several medical office buildings have been built along New Scotland, along with a Hilton Garden Inn, the Albany Times-Union reported. In addition, Albany Med is in the final stages of completing a $360-million, six-story patient pavilion.