A company known for renovating suburban retail has purchased Chicago’s Block 37 shopping mall for a bargain-basement price.
Edwards Realty Co. announced Wednesday that it paid $30 million for Block 37, which occupies a full city block bounded by North State, West Washington, North Dearborn and West Randolph streets. That’s a fraction of the $84 million CIM Group spent in 2012 to buy the five-story mall out of foreclosure.
Ramzi Hassan, president of the Orland Park-based Edwards, promised to transform Block 37 into an experiential retail center that hosts year-round events, and attracts new entertainment options and restaurants. The property, located at 108 N. State St., will also get a new name.
“Block 37 sits on one of the best corners in downtown Chicago — and it’s never acted like it,” Hassan said. “It’s always been a place people cut through. We’re creating a place they come back to.”
The block has been a hard-luck property for decades, said John Vance, principal at Stone Real Estate. But with a new owner and signs of life flickering in the Loop, it finally has a chance to reach its potential, he said.
“State Street has caught some momentum, it’s like the Magnificent Mile
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was about two years ago,” Vance said, pointing to Barnes & Noble opening in August a multilevel bookstore at 150 N. State St. “And even though Edwards has been focused on suburban retail, they know and understand how to lease retail centers, and they also know the Chicago region, which is vital.”The low purchase price likely means the new owner will be able to lease Block 37 space at prices many retailers can afford, he added.
“(CIM Group) decided to take the loss and move on,” Vance said. “It’s unfortunate for them, but it’s really positive for the city and the Loop.”
Edwards Realty Co. and its partner Core Acquisitions bought Burr Ridge Village Center, an open-air shopping mall in west suburban Burr Ridge, in 2019 when it was 60% occupied.
They launched a renovation, attracted a new collection of restaurants and entertainment outlets, and brought the 200,000-square-foot mall’s occupancy up to 95% by 2025, Hassan said.
“We don’t acquire properties to maintain the status quo, and the building soon-to-be formerly known as Block 37 is no different,” he said. “We acquired it because we believe it can be one of downtown Chicago’s defining destinations.”
Empty storefronts are still common in downtown Chicago, but conditions are improving.
The retail vacancy rate stood at 29.76% two years ago, and ticked down to 28.53% in 2025, Vance said, while Block 37 is about two-thirds occupied.
Current Block 37 tenants include Banana Republic Factory Store, AMC Theatres, Five Iron Golf, Sephora and State Street Souvenirs. The mall’s lower-level is a well-used pedway connecting the CTA’s Red Line and Blue Line.
CIM Group added a 38-story, 690-unit residential tower to the site in 2016. It was not included in this week’s sale.
Block 37 once held a hodgepodge of aging office buildings, a movie theater, stores and the landmark McCarthy Building. Most were demolished in 1989 to make way for a new development. That proposal fell apart, and although other development ideas were put forward, they also failed, leaving the block vacant for nearly two decades.
Its misfortunes continued after Block 37 developer Joseph Freed and Associates launched construction in 2006. The retail portion opened in 2009 in the midst of the Great Recession, after some potential tenants, including Apple, had already backed out. Freed defaulted on its loan, and lender Bank of America foreclosed on the property.
Other well-known downtown malls are also getting makeovers.
The owner of The Shops at North Bridge said in August it will pour $40 million into a dramatic renovation of the complex. The four-level shopping center at 520 N. Michigan Ave. will get a new glass facade, an upgraded entrance on Rush Street and a reconstructed central atrium.
MetLife Investment Management, the owner of Water Tower Place, said earlier this year it planned to spend $170 million transforming the eight-story vertical indoor mall at 830 N. Michigan Ave. into a three-story retail center of small shops and new restaurants, with offices on the other floors.
Vance said he’s optimistic about Hassan’s latest renovation project. Google plans to open in the nearby James R. Thompson Center by 2028, and several thousand new residents will soon move into the neighborhood’s half-dozen office-to-residential conversion projects, giving a renovated Block 37 several new customer bases, he said.
“It would be great if they chose to make Block 37 their new local retail,” he said.