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CHICAGO-Russland Capital Group Inc.’s 229-unit condominium building at 1250 S. Michigan Ave. has cleared a financing hump thanks to a $6.25-million mezzanine loan from Frisco, TX-based Hall Financial Group. The developers now expect to break ground before Halloween, with completion set for early 2005.

Russland Capital Group Inc. had a $58 million first mortgage from Fremont Investment as well as $6.5 million of its own equity in the $71 million project. Pre-sales for the 29-story Michigan Avenue Tower were not a problem, as 83% of the units have been claimed, according to Appraisal Research Counselors. The eight sales in the second quarter 2003 averaged nearly $400,000, according to the firm’s most recent Residential Benchmark Report.

The 83% pre-sale rivals Museum Park Tower II at 1345 S. Indiana Ave., where 87% of the units have been claimed. However, that project got under way more than a year before Michigan Avenue Tower. All one-bedroom units have sold out. Two- and three-bedroom asking prices range from $338,800 to $698,800, and four penthouses in the 3,000-sf range are available at $1.5 million each.

Michigan Avenue Tower is being built on the northern edge of the massive $75 million Central Station development. It is being designed by Papageorge/Haymes Ltd. Walsh Construction is serving as general contractor. The firm of Frankel & Giles is marketing the units.

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