A Chicago-based real estate firm just picked up one of downtown's most storied retail properties for pennies on the dollar compared to its past price tags. Edwards Realty Co. paid $30 million for the retail portion of Block 37, the 278,000-square-foot vertical shopping mall at 108 N. State St. that occupies the full city block bounded by State, Washington, Dearborn and Randolph streets.
The deal closed on Tuesday, according to Bisnow, with Edwards Realty working alongside Republic Bank, LFI Energy and the Rose Family Office to get it done. LFI Energy is described as a strategic financial partner in the transaction. Edwards Realty Co., which is based in Chicago, plans to reposition Block 37 as a modern experiential destination and is already in discussions with retailers, restaurants and experience-based operators about filling space.
Block 37 is currently about 65% occupied, leaving a sizable chunk of the mall's retail and entertainment footprint up for grabs. Company president Ramzi Hassan said Block 37 sits on one of the best corners in downtown Chicago, and that the firm acquired it because it can become one of downtown's defining destinations, per the same Bisnow report. The low purchase price gives Edwards Realty room to offer highly competitive lease terms as it pursues a broader tenant mix and works toward unveiling a new identity for the property as the repositioning progresses.
A Steep Discount From Block 37's Troubled Past
A Steep Discount From Block 37's Troubled Past The $30 million price tag marks a dramatic reset for a property that has changed hands through financial distress more than once. Original developer Joseph Freed & Associates defaulted on a $205 million loan, and Bank of America foreclosed on the shopping center before buying it at a court-ordered auction for $100 million in March 2011, according to CBS News. CIM Group then acquired Block 37 out of that foreclosure for nearly $84 million in 2012, per the Bisnow report, and went on to add a 690-unit apartment tower above the mall.
That residential tower, known as the Marquee at Block 37, was later spun off entirely. The Real Deal reported that Morguard, which already controlled 49% of the apartment skyscraper, was buying out CIM Group's stake to become the tower's sole owner. Edwards Realty's purchase now takes on the distinct challenge of reimagining the multi-level retail and transit-connected spaces beneath that apartment building, separate from the residential component above.
Loop Retail Shows Signs of Life
Edwards Realty's bet comes as downtown Chicago's retail market shows modest but real improvement. Overall retail vacancy across the Loop fell to 28.53% in 2025, down from 29.76% in 2024 and 30.13% in 2023, marking a second straight year of post-pandemic recovery for the central business district, according to a Stone Real Estate report. Along State Street specifically, the storefront vacancy rate dropped from about 35% in 2024 to roughly 28.8% in 2025, per the same report, helped along by openings from Barnes & Noble, the Gap Factory Store and a Board of Election voting facility.
John Vance, citing the Stone Real Estate report, said State Street's continued improvement is needed for the entire Loop to regain its footing. Other downtown property owners have poured money into repositioning efforts too — Water Tower Place received a $170 million redevelopment infusion, and retail at 500 N. Michigan Ave. traded for $41 million this year.
Edwards Realty's Track Record With Struggling Centers
This is not Edwards Realty's first attempt at turning around an underperforming retail property. The firm and partner Core Acquisitions acquired the 200,000-square-foot Burr Ridge Village Center in 2019, when it was only around 60% occupied; by 2025, that center had exceeded 95% occupancy. Edwards Realty also uses an in-house retail incubator program called Pop Local, which gives selected small businesses three months of free rent and marketing support to help convert pop-up concepts into permanent leases.
The firm has stayed active elsewhere in the region as well. It partnered with Core Acquisitions in March to buy the 514,000-square-foot Shops at Carriage Crossing lifestyle center in Collierville, Tennessee, for $25 million.
What Else Is Changing Around Block 37
Block 37's retail reset arrives alongside other shifts affecting downtown's office and tenant landscape. Morningstar, headquartered at 22 W. Washington St. near the mall, announced last month that it will relocate its corporate headquarters to Chicago's renovated Thompson Center in late 2028, according to CBS News.
Block 37 also carries some unusual history beneath its foundations and in its origin story. The CTA shelved a plan for an express-train superstation beneath the mall in 2008 after spending more than $250 million on an underground shell, a story Hoodline has detailed. The site's assembly in the late 1980s also prompted lasting preservation debate after the Chicago City Council voted in 1988 to revoke landmark protections for the 1872 McCarthy Building, according to Wikipedia.
