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CHICAGO-Magellan Development Group is expected to startconstruction within the next month on the $474-million, mixed-useAqua tower at Lakeshore East. Construction financing was recentlyarranged for the 2.2-million-sf project. The New York branch ofEurohypo AG, LaSalle Bank and National City Bank have arranged a$427-million construction loan with a $24-million mezzanine loanprovided by Lehman Bros. and developer Magellan development groupproviding $24 million in equity. The loans are scheduled to closeMarch 1, Magellan president David Carlins says.

Construction is expected to begin as soon the developer receivesthe final building permit, which should be within a few weeks,Carlins says. The tower, expected to be compete by the middle of2009, is a development of Lakeshore East LLC, an affiliate ofMagellan Development Group LLC. The 81-story building will featurecondominiums, apartments, an 18-floor hotel, retail and officespace.