Downtown Chicago's Block 37 sold for $30 million

Downtown Chicago's Block 37 mall was sold to Edwards Realty Company this week for $30 million, the company announced Wednesday.

The sale closed on Tuesday. The realty company said Wednesday that it plans to "reposition" the mall as a "modern experiential destination.

"Block 37 sits on one of the best corners in downtown Chicago — and it's never acted like it," Ramzi Hassan, president of Edwards Realty Company, said in a news release. "It's always been a place people cut through. We're creating a place they come back to."

The company said the revamped Block 37 mall would be "powered by retail, entertainment, culture, media, experiences, strategic partnerships and year-round programming."

A news release did not get into further specifics. But Hassan told Crain's that the first and second floors of the mall are set still to be focused on retail, while the vacant third floor —formerly home to the Latinicity food hall — would be geared toward entertainment and experiential uses.

The release said Edwards is already in discussions with retailers, restaurants, and experience-based businesses to fill the vacant space in the mall.

"We have the unique opportunity to pair aggressive leasing and merchandising to build the right mix for the property," Aaron Gadiel, senior vice president of tenant relations and marketing at Edwards Realty Company, said in the release. "When we align that tenant mix with exciting programming, strategic partnerships, brand activations, and a new direction for the property, we think we'll create something that is central to the Loop experience and supports the businesses inside."

The Block 37 mall, 108 N. State St., across from the Macy's flagship, currently houses an AMC movie theater, Five Iron Golf, a Magnolia Bakery, Sephora, Akira, Zara, and a Banana Republic Factory Store. The Flip, Chicago's Playable Pinball Museum, recently joined the Block 37 array on the Pedway level. Meanwhile, an Anthropologie store closed in 2025, while the Potting Bench Plant Studio closed recently.

Some of the most recent headlines out of Block 37 have been less than cheery. In March of this year, a small fire at the Tea Monster restaurant on the Pedway level filled the mall with smoke. Tea Monster did not reopen until September.

In July of this year, the Magnolia Bakery location at Block 37 was shut down by the Chicago Department of Public Health after live roaches were seen near the food preparation area. The bakery location later reopened.

Previous owners the CIM Group put the mall up for sale in 2023. Crain's reported Edwards Realty Company bought the mall at a "big discount."

The Block 37 mall opened in 2009 amid the Great Recession. Developer Joseph Freed and Associates defaulted on a $205 million loan from Bank of America, and in 2011, the mall was auctioned off to the bank.

From the beginning, critics bemoaned the amount of empty space in the mall, as well as a planned and much-ballyhooed Chicago Transit Authority "superstation" with express train service to O'Hare and Midway international airports under the mall that never ended up opening.

Block 37 also includes the 22 W. Washington St. building, which has been home to CBS Chicago since the station moved from its old headquarters at 630 N. McClurg Ct. in 2008, as well as the investment research firm Morningstar, which is moving to the Thompson Center in  2028.

The 22 W. Washington St. building, as well as the Marquee at Block 37 apartment tower, are owned separately from the mall and were not part of the Edwards deal.

Bounded by Washington Street, State Street, Randolph Street and Dearborn Street, Block 37 once sported a hodgepodge of vintage buildings housing theaters, arcades and wig shops, among other businesses.

Among its most prominent buildings were the landmark 1872 McCarthy Building, the Hillman's Building with the Stop & Shop gourmet grocery store, the United Artists and Roosevelt movie theaters, the Baer's Treasure Chest arcade, a Burger King with an astronaut theme, and the 1892 Unity Building, which published reports noted once housed the political offices of several past Chicago mayors.

In 1988, under Acting Mayor Eugene Sawyer, the City Council gave developer FJV Venture a $24 million subsidy to redevelop the site, published reports noted. To facilitate demolition, the city landmark status for the McCarthy Building was revoked.

In October 1989, shortly after Mayor Richard M. Daley was elected, all the buildings except a ComEd substation were demolished.

The original plan to develop Block 37 called for a five-story shopping center, and two towers designed by celebrity architect Helmut Jahn and standing 30 and 50 stories tall, the blog ArchitectureChicago Plus recalls. But that project collapsed, and for more than a decade afterward, Block 37 remained nearly empty and was used mostly for the Gallery 37 youth artists' programs and the "Skate on State" ice rink.

The city ended up buying Block 37 back from FJV Venture in 2001, and sold it to another developer, Mills Corp., two years later. But in October 2006, Mills fell into financial trouble and handed over part of the project to Golub & Co., which now manages the 22 W. Washington St. building, and the mall portion to Freed.