(Read more on the multifamily market.)

CHICAGO-Russland Capital Group Inc., based here, has received a mezzanine loan, which completes its construction funding for Michigan Avenue Tower Two. Russland received an $8.6 million loan from Terra Capital partners, based in New York, says Dan Cooperman, managing director of Terra. Russland, a partnership of developers Jacob Bletnitsky and Alex Vaisman, had previously received a $66.5 million construction loan arranged by Fremont Investment and Loan. Vaisman pegged the value of the tower at about $102 million and said it will cost approximately $62 million to construct it.

The 28-story condominium tower, at 1400 S. Michigan Ave., will have 267 units. The tower is modeled on its predecessor, Michigan Avenue Tower One, which is one block north at 1250 S. Michigan Ave and opened in March 2005. There will be between seven and 12 units per floor, with four penthouse units. Units will range in size from between 750 sf to about 3,000sf with the price ranging from $220,000 and $2 million, Vaisman says. The units are about 85% pre-sold with only about 40 units remaining, he says.

Amenities include a landscaped deck with a swimming pool, a botanic garden that will cover the south portion of the parking garage, with an included dog run. The tower will also have about 9,000 sf of retail. The retail space will include “service” businesses such as a restaurant, cleaner, coffee shop, sundry store or small boutique, Vaisman says. Construction began about four months ago and the property should open in the fall of 2008, says the company. Walsh Construction Co. is the general contractor for the project.

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