CHICAGO-Four years after the first announcement, a joint venture has secured a $170 million construction loan to build the Lincoln Park 2520 condo project. Ricker-Murphy Development LLC, joined by GE Pension Trust affiliate Lake Tower Development LLC, said a group of lenders led by the Japan-based Sumitomo Mitsui Banking Corp. will front the money.

Demolition began for the project in late 2006 on the former Columbus Hospital site in the Lincoln Park neighborhood along Lakeview Avenue. American Invsco Corp. sold the site for $45 million. Rickey-Murphy touted the $300 million plan as including 314 condos in three buildings, as well as 13 townhomes along St. James Place and Deming Place. After the recession ravaged condo projects, the venture, still seeking development funds for its 50% sold complex, said in July 2009 that it would lower the unit count to 198.

Buyers backed out of the project, reportedly leaving it about 30% signed. However, the venture persevered, and with the new loan in place has announced that it will boost the unit number to 292 condos in a 39-story building. “This is a case of a once-in-a-lifetime project overcoming a once-in-a-lifetime challenge,” said Peter Rickey, co-principal, in a statement.

The venture has increased the prices of the units from the planning stages. Originally starting at $500,000 and running to $10 million, the units now start at $1 million and go up to $11 million for the priciest penthouse. The cost of development has reportedly risen to up to $400 million.

 Jerry Karr, senior managing director of GE Asset Management, acknowledged that obtaining financing for the first new high-rise in Lincoln Park in decades was no small feat, but said the development team never wavered. “We knew we had a magnificent building in an irreplaceable location,” he said in a statement.

Construction is underway with the first deliveries in the tower anticipated early in 2012 and substantial completion anticipated in summer 2012.

Ricker-Murphy Development LLC is a partnership of Peter E. Ricker, chairman and CEO and John T. Murphy, president of MB Real Estate, a locally-based firm with extensive real estate experience and interests. Lucien Lagrange Architects, also based in Chicago, designed the tower.