The project to redevelop the historic O Street market broke ground on Friday morning.
The original O Street market was built in 1881, and together with Eastern Market, was among the first five brick market buildings in the District.
A Giant food store had been on the site, but the supermarket was shuttered and gutted to make way for the new project.
A new Giant store will be put in its place, integrated to the brick facade still left standing on the site. The project also calls for 635 new residential units. Four hundred and one units will be market-rate apartments, 150 will be "high-end" condos, and 84 units will be set aside for seniors.
A Cambria Suites hotel is also going up on the property.
The new iteration of the O Street Market received fast-tracked federal funding from the Housing Urban Development agency. The federal government hopes the project will create 2400 jobs, some construction-related and some permanent.
Roadside Development is the firm that is overseeing the project. The estimated cost is $300 million.