Waterfront Toronto has selected its development team for phase one of the West Don Lands project, the first step towards a planned $250 million private-sector investment.

The first new waterfront neighbourhood of the revitalization, known as River Square Neighbourhood, includes 850 units of housing and is located between from King Street in the north to the new Don River Park in the south, and from St. Lawrence Street in the west to Bayview Avenue in the east.

Once completed, West Don lands will be a green neighbourhood home to 10,000 residents and will feature pedestrian-friendly streets, parks, public spaces, schools, childcare, recreation centres and public transit within a five-minute walk of all homes.

In addition to the 850 market housing units, phase one development also includes 130 units of affordable housing that is being developed by Toronto Community Housing Corporation.

Construction on the revitalization is expected to begin this fall, with the full project to be complete over the next 10 to 12 years in four phases.

On Wednesday, Waterfront Toronto, the government agency created to overhaul the waterfront revitalization, announced the development team of Urban Capital Property Group, of Toronto, and Redquartz Development, of Dublin.

"We are delighted to have been selected to deliver the first, exciting project for Waterfront Toronto," David Wex, of Urban Capital Property Group, said in a press release. "We share in Waterfront Toronto's vision for creating an innovative, showcase new community in the West Don Lands."

The announcement of the development partner shows the waterfront revitalization is moving forward, said Ontario Public Infrastructure Renewal Minister David Caplan.

"Ongoing implementation on Ontario's top waterfront revitalization priority brings us closer to a live, work, play community that will serve as a model for future redevelopment."

Toronto Mayor David Miller said the development team understands the site's history and the need to connect the new community to both the city's downtown and waterfront.

The sales launch for phase one housing is expected for January 2009, with construction scheduled to begin in 2010. Occupancy is expected in 2011.