An eight-story State Street building in the Loop has sold for just $2.8 million, a rock-bottom price that shows how shaky downtown retail has become. The buyer, the Downtown Islamic Center, says it will repurpose the long-vacant property at 213–227 South State Street for expanded community programming.
According to Crain's Chicago Business, California-based lender Calmwater Capital sold the 112,495-square-foot building, with SVN Chicago Commercial handling the marketing for the sale. Brokers Chad Schroedl and Scott Maesel represented Calmwater in the transaction, the outlet reported.
Foreclosure, Vacancy, And A Steep Markdown
The bargain price followed a rough stretch for the property. Sterling Organization surrendered the building rather than pay off an $18.3 million mortgage, and Calmwater took control via a deed-in-lieu of foreclosure in 2023, The Real Deal reported. The building has been sitting empty since Foot Locker closed in 2020, and Stone Real Estate pegs vacancy on State Street at roughly 26 percent, conditions that have produced other bargain sales, including an October transaction at State and Madison that fetched about $8.3 million, according to an earlier report from The Real Deal. Mosque chairman Mohammed Kaiseruddin said the new facility will be used for Sunday school, adult religious education and interfaith programming.
What The Sale Could Mean For The Loop
The purchase highlights how local institutions are stepping into openings created by distressed downtown retail, as lenders and owners grow more willing to accept steep markdowns rather than hold long-term empty space. For congregants, the deal promises more neighborhood services in a prime location. For the broader Loop, it signals that the corridor's recovery will likely lean on a different mix of tenants than the national retail anchors that once dominated State Street.
