BELLINGHAM - The next phase of a major downtown apartment project is in the works.

Demolition of a former Morse Hardware warehouse began earlier this week to make way for a new 60-unit apartment building, said Rick Westerop of West-Lind Construction. The project is along the west side of the alley a half block south of Depot Market Square.

Westerop said that along with the demolition of the warehouse, nearby above-ground utility wires will be placed underground.

Construction of the apartment building itself is scheduled to begin in March and take about a year to complete. Two other apartment buildings are planned for the site, adding 182 residential units if all three buildings are completed.

Earlier this year, Westerop finished construction of the 56-unit apartment building that sits nearby along East Maple Street.

Reach DAVE GALLAGHER at dave.gallagher@bellinghamherald.com or call 715-2269. Visit his business blog online at blogs.bellinghamherald.com/business or get updates on Twitter at twitter.com/BhamHeraldBiz.