BARRIE, ONT. -- Guelph-based developer SkyDev is breaking ground Wednesday for a largescale apartment development in Gravenhurst.

The 'Talisman Gate' project will include a hotel and 236 unit apartment complex and retail amenities.

A four-building apartment complex will be constructed first, with occupancy expected next year.

TownePlace Suites by Marriott will operate the hotel.

SkyDev President Greg Jones tells CTV News there is a rental crisis in the province, and the demand for affordable rentals is on the rise in Muskoka Lakes. Jones said there is a need and demand for this type of large-scale community, and this build will increase the rental housing supply by 38 percent in Muskoka.

The apartment development will include community gardens, a multi-purpose court, a gym, a yoga studio, a games room and an outdoor terrace with a screened-in eating area.

The cost of the units will be within market value.

The first of the two buildings are under construction now at 110-120 Preston Way in Gravenhurst.