The final phase of 191 private rental flats at the canal-side scheme follows on from two earlier blocks completed in 2015.
Lendlease will build two more eight-storey blocks with flats available to move into by late 2021.
Blocks three and four will be linked by a two-storey building containing a gym and lounge area.
Works planned for the coming months include the replacement of hoardings and beginning piling.
The canal-side development has been designed by Birmingham-based Weedon Architects, helped by mechanical and electrical engineers, Hulley & Kirkwood.
It is close to the shops and restaurants of Spinningfields, and just a short walk from the city centre, but is also surrounded by an abundance of green space.
Justin Davies, Head of Residential for Lendlease, Europe, said: “Potato Wharf is a fantastic place to live and we are very proud to be part of the community. Given the popularity of the first phase of development, I am confident that our new homes will also be very well received.”
Over the last 12 months in Manchester, Lendlease has also secured a coveted contract to refurbish and partially restore Manchester’s Grade-1 listed town hall.