The chain already has branches in Jerusalem, Tel Aviv, and Nazareth.
Azrieli is Israel's largest real estate company with 1.2 million square meters of space.
The Modani is being built on the site of the Blue Bay Hotel, which has been demolished.
The Supreme Court upheld the Magistrates Court ruling ordering May-Tal to pay an Arab couple NIS 40,000 for refusing to sell them a Jerusdalem apartment.
Much of the increase in housing purchases in the first half is attributable to the Buyer Fixed Price Plan lotteries, under which 6,900 apartments were sold.
The Jerusalem Local Planning and Building Commission has approved the project.
A selection of the latest real estate deals in Israel including in Ramat Hasharon, Bat Yam, Ashdod and Netanya.