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CHICAGO-Prime Group Inc., based here, has begun work on a 36-story condominium tower at 10 East Delaware Place and recently acquired $96.2 million in financing from Fremont Investment & Loan. Demolition and site preparation work is under way and construction of the 121-unit building should begin in a couple of months, says Scott Manlin, vice president and regional manager in Fremont's Chicago office.

The amount of the loan, which closed on March 16, is for 80% of the project cost. The term of the loan is three years and is interest-only with a variable rate floating above LIBOR, Manlin tells GlobeSt.com. About 40% of the units are already reserved or under contract. Capri Capital Partners, headquartered here, provided the mezzanine financing.

The tower, which will be located in Chicago's Gold Coast neighborhood, is near restaurants and retail, but is also one of the few new condominium towers being constructed in the area. "There has not been much new supply in this market for the past couple of years," he says. First occupancies for the residential units should begin in the late spring or early summer of 2009. The tower will also have an approximate 3,500 sf of retail space. Asking lease rates have not been determined yet, Manlin says. Possible tenants include restaurants and other businesses that would service the residents of the building, he says.