The development, planned for North Greensboro Street in Carrboro, was approved in 2013, but plans went dormant shortly after approval.
The project has been in the works since 2011.
Mark Moshier, principal of the Legacy Real Property Group, said the permits were issued by the town of Carrboro a couple weeks ago, and since then they have started clearing the property and doing site work.
Trish McGuire, planning director for the town of Carrboro, said this site work includes the construction of the erosion control pond.
Bethany Chaney, a member of the Board of Aldermen, said she is excited for the construction of Shelton Station.
Chaney said she thinks more housing units are needed near the commercial area and city center.
“This is going to be some really quality and needed and relatively dense rental housing right downtown,” Chaney said.
Chaney said Shelton Station will also provide more affordable housing options for Carrboro.