Image courtesy of PCA

The 1 million-square-foot Washington Village is beginning to transform an industrial section of South Boston into a large mixed-use development.

Developers have broken ground on the first phase including 254 apartments and 20,000 square feet of restaurant and retail space in a building on the corner of Old Colony Avenue and Dorchester Street. Boston-based developers Samuels & Assoc., Core Investments and Intercontinental Real Estate Corp. partnering on the project.

Core Investments CEO David Pogorelc acquired the first 2-acre parcel in 2010 and helped a group of neighboring businesses relocate, enabling Core Investments to expand the site to 5 acres and seek approvals for the large-scale development.

“Washington Village has as an outstanding place in the history of the neighborhood, and I am delighted to celebrate the realization of this reimagined project. This first phase of Washington Village is a key step in renewing Dorchester Avenue in South Boston for the 21st century,” Pogorelc said in a statement.

The site spans nearly 5 acres previously occupied by low-rise industrial and commercial buildings, parking lots and vacant lots. At completion, Washington Village will include 248 apartments and 408 condos, a 1-acre public park and upgrades to sidewalks and crosswalks.

Core Investments now is responding to the increased demand for commercial space on the Dorchester Avenue corridor in South Boston. The proposed “On the Dot” project would include 1.7 million-square feet of office, lab and residential space on parcels just north of the MBTA’s Andrew station.