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A crane has started lifting large precast concrete panels into the framework, creating walls and floors on the building site.
Dunedin property developers Frank and Karen Cazemier were granted resource consent in 2018 to build the four-storey, 27-unit facility with a manager's residence and ground-floor cafe.
It will also have 22 car parks on the ground floor.
The building will be about 12m high. Its front and rear glass walls will have an image by an artist printed on them.