Boston University School of Medicine will hold a groundbreaking ceremony on Thursday for its new $40 million student residence.

The nine-story building sits on an 86,000-square-foot parcel of land the school purchased in February 2008, according to a statement. There are 104-two bedroom suites equipped with bath, kitchenette and living spaces. There will also be an exercise room, lounge and parking.

The residence will house up to 208 first- and second-year medical students. The construction for the building is estimated to take 18 months to complete, according to a statement.

"As the neighborhood becomes more successful, our students have had more difficulty finding affordable housing," a school representative said in a statement. "They are being forced further and further from campus and commute up to a couple of hours each way to attend classes. Student housing has become a top priority."

Boston Mayor Thomas M. Menino, along with members of the school’s administration, are expected to attend the groundbreaking ceremony.