Hubbell Realty Co. is expanding its presence in the Greater Omaha area with development of the Rye at Harrison, a $20 million apartment and townhome community, the West Des Moines-based company announced.

Development of the Rye, located just west of Omaha near South 213th and Harrison streets, is expected to begin in late 2025. The Rye will include a total of 286 living units, spread between rental apartments and townhomes, and over 550 parking spaces. The entire project is expected to be completed by late 2027.

The first phase of the development will include about 99 one-, two- and three-bedroom townhomes.

“The Rye presents a unique opportunity to continue the expansion west along Harrison Street in a very desirable area,” Matt Weller, Hubbell’s vice president of development, said in a prepared statement. “We believe rental housing of both types will be heavily desired for the workforce coming to this area.”

A new children’s hospital and medical center is planned in the area.

The Rye will be Hubbell’s second residential development in the Omaha area. It entered the market in mid-2024 with Sagebrook, a $55 million, 264-unit multifamily development in La Vista, an Omaha suburb. Development of Sagebrook, which includes 180 apartments and 84 rental townhomes, is nearing completion.

Demand for rental housing in Omaha is outpacing supply, according to reports by several Omaha-based commercial real estate companies. In the first quarter, average rent grew by 3.6%, the highest among major U.S. markets, according to CoStar, a real estate analytics company. The area’s vacancy rate was 5.9% in the first quarter, according to a CBRE Inc. report.