Construction has started on the third phase of the $200 million South Market District mixed-use development, an upscale apartment complex called The Beacon.

The building, at Girod Street and O’Keefe Avenue, will consist of 126 apartments, 20,000 square feet of retail space and a landscaped courtyard. The retail space in The Beacon will focus on apparel, accessories, home furnishings and additional services.

The Beacon is scheduled for completion in January 2016 and will connect to the South Market District’s fourth building, which is set to begin construction in late 2015. Work on the fifth and final building should begin in late 2016.

“The future of downtown New Orleans is incredibly bright. South Market is attracting tremendous interest from prospective residents and retailers alike. We look forward to watching the area transform into a vibrant community over the coming months,” said Matt Schwartz, a principal with The Domain Companies, which is developing South Market District.

When completed, the development will have more than 700 apartment units and 170,000 square feet of retail space.

Parts of the first two phases of South Market District, The Paramount, a 209-unit apartment building with 21,500 square feet of retail space, and The Park, a garage with 27,000 square feet of retail space, are scheduled to open in December. The retail components of both buildings will open in early 2015.