A groundbreaking ceremony was scheduled today to mark the beginning of construction of Gateway North, a 71-unit rental complex in Lynn.

Owned by Washington Gateway Associates LP and being developed by Washington Gateway Development LLC, the development at 700 Washington St. is the first in Massachusetts to receive funding from the $100 million workforce housing initiative.

Designed by The Architectural Team Inc., the $31 million, 5-story building will contain 18 one-bedroom units, 46 two-bedrooms units, seven with three bedrooms and 2,000 square feet of commercial space. Construction is expected to be completed in spring 2018.

The transit-oriented project is an outgrowth of the Washington District Master Plan by Sasaki Assoc. that was initiated by Lynn Housing and Neighborhood Development with funding from the state Department of Housing and Community Development.

Washington Gateway Associates LP is owned by partners Neighborhood Development Assoc. and Hub Holdings LLC. Construction and permanent financing will be provided by the AFL-CIO Housing Investment Trust.