The four-building Holbeck Urban Village development, located in the south side of Leeds city centre, will offer one, two and three bedroom apartments.
Civils firm Northfield Construction has started onsite, with the development due for completion in June 2019.
Briggs & Forrester has also been selected to carry out the M&E package.
Debbie White, Interserve’s chief executive, said: “This contract is an exciting addition to Interserve’s growing portfolio of accommodation projects and adds to our already extensive presence in the Yorkshire region.
“We look forward to playing a central role in the regeneration of Leeds city centre, and creating much-needed new homes in the area.”
Sean O’Connor, Dandara’s Project Director said: “The Private Rental Sector is already providing accommodation and can help deliver the homes needed by those who want to live and work in Leeds and other major UK cities.
“This project will create numerous local employment opportunities and we look forward to working with Interserve to deliver these 744 high quality PRS apartments in the city centre.”