By Casey Ross Globe Staff

The Boston Redevelopment Authority has approved construction of 38-story residential tower behind the TD Garden that will include more than 500 apartments, restaurants and stores.

AvalonBay Communities Inc. will build the tower on Nashua Street, filling in empty space between the Garden and the Charles River. The $200 million project, approved by the BRA board Thursday night, also includes construction of a two-story retail arcade that will connect the new tower to Causeway Street and North Station.

Executives with AvalonBay have said they hope to start construction this fall.

“We believe the West End neighborhood and, in particular, North Station has tremendous potential to become a true nexus within the city for residents, commuters, and others,” said Scott Dale, AvalonBay’s senior vice president of development.

The project is one of several large developments expected to transform the area around the Garden in coming years with more than 1,800 new residences, hotels, office buildings, stores and restaurants.

Converse Inc. recently committed to move its corporate offices into a large new development at nearby Lovejoy Wharf, and Stop & Shop and Target are considering new stores in a pair of towers being planned in front of the Garden by Boston Properties and Delaware North Cos.

The AvalonBay project, called the Nashua Street Residences, will include a mix of studios, one-bedrooms, two-bedrooms, and 32 three-bedroom units. The development also includes 219 parking spaces and a terrace on the 35th floor with views of Boston Harbor and the downtown skyline.