THE Rockhampton building firm won the tender for the $50 million development on Victoria Parade and construction will start in December.
Developer partner Andrew Beaumont said a number of construction companies submitted tenders, but a driving factor in the decision was having a relationship with a local building company.
JM Kelly general manager John Murphy said it was great that local developers supported local construction companies.
About 120 people will be employed during construction which is expected to be completed by mid 2014.
He said during construction, the majority of employees would be existing JM Kelly staff and subcontractors.
"But there will be an increase in some trades," Mr Murphy said.
"All will be sourced locally."
Of the 138 apartments in the development, 98 are under contract.
This will be the first time that Mr Beaumont has worked with JM Kelly.
JM Kelly started in Rockhampton in 1961.
It has built more than $5 billion of projects in the region.
JM Kelly employs 400 staff, including more than 70 apprentices.
Two levels of underground car parking
Retail on ground floor
138 apartments, of which 70% are under contract before construction