FORT WAYNE, Ind. (WOWO): Construction has begun on a $40 million project in downtown Fort Wayne.

The Skyline Tower Project will consist of 124 apartments, retail space and office space, according to the city of Fort Wayne.

In February, Great Lakes Capital announced Ruth’s Chris Steak House will be the first floor anchor tenant in the Skyline Tower. Office space will be on the second floor and floors 3 to 12 will be apartment units.

RELATED: Skyline Tower gets approval for Regional Cities grant

“Skyline Tower is a tremendous addition to the heart of our city,” said Mayor Tom Henry. “I continue to be encouraged by the progress we’re seeing throughout Fort Wayne.”

$4 million of the project will be paid through tax increment financing (TIF). The Skyline Garage has 1,077 parking lots and the Fort Wayne Redevelopment Commission owns and operates the garage.

The Skyline Tower project was also awarded $2.8 million in Northeast Indiana Regional Cities funds.

Retail spaces, office spaces and the upper five floors of apartments are scheduled to be finished in the first quarter of 2018. The rest of the project should be finished by mid-summer in 2018.

Construction is underway on the Skyline Tower project in the @CityofFortWayne. https://t.co/5PvMT5S98Q pic.twitter.com/3YMyWznTSb

— Mayor Tom Henry (@MayorTomHenry) October 18, 2016