VIRGINIA BEACH, Va. (WVEC) -- Armada Hoffler Properties, Inc. announced Friday the start of construction of a new mixed-use development project in Virginia Beach's Town Center.

The $35 million newest addition to Town Center is expected to include 39,000 square feet of street-level retail and restaurant space and about 120 luxury apartment homes, the company says.

In addition to the retail and residential elements, Zeiders American Dream Theater will invest about $8 million in a 17,000 square foot performing arts theater. The City of Virginia Beach is expected to invest $3 million into an open-air public plaza on the second level of the development and a pedestrian bridge connecting to an adjacent parking garage.

The project is expected to be completed in the spring of 2018. Two national retailers have already shown interest in the development and have committed to more than 18,000 square feet of space at the base of the future residential tower, according to Armada Hoffler Properties.

The groundbreaking ceremony for the project will take place on Monday, Oct. 24, at 11 a.m. in the Fountain Plaza in Town Center.