Edwards Realty Co. acquired a high-profile retail section of Block 37 in a major bet on the Central Loop’s revival.
The Chicago-based real estate development and property management company paid $30M Tuesday for the 278K SF vertical shopping center at 108 N. State St. The move comes as retail tenants slowly return to downtown, which was hammered during the pandemic.
Block 37 at 108 N. State St. in Chicago
Edwards Realty Co. is a massive property reposition, which occupies a full city block bounded by State, Washington, Dearborn and Randolph streets, as a modern experiential place.
“Block 37 sits on one of the best corners in downtown Chicago – and it’s never acted like it,” said Edwards Realty Co. President Ramzi Hassan in a statement. “It’s always a place where people meet. We’re creating a place that people will come back to.”
Edwards Realty Co closed on a deal with Republic Bank, strategic financial partner LFI Energy and The Rose Family Office.
The trade was a significant loss for seller CIM Group, which acquired the property from foreclosure in 2012 for nearly $84M. CIM Group also added a 690-unit apartment tower above the mall and sold a 51% stake to Morguard for more than $135M in 2019, CoStar News reported.
The reset basis for the mall enables Edwards Realty Co. to offer “highly competitive lease terms” and “pursue a broader tenant mix,” the company said in a release. The company has also signaled that it will unveil a new identity for Block 37 as the repositioning progresses.
The mall is 65% occupied, the developer said Bisnow. The company said it is already in discussions with retailers, restaurants and operators based on its experience to fill the vacant space.
Signs show market conditions for downtown Chicago stores are improving.
The vacancy rate for State Street storefronts drops from about 35% in 2024 to about 28.8% in 2025, according to Stone Real Estate. Key leases from Barnes & Noble, Gap Factory Stores and the relocation of the Board of Elections voting facility helped boost street occupancy.
“As the major soft goods retail thoroughfare in the Loop, State Street plays a tremendous role in the health of the Loop’s overall retail market and continued improvements are needed for the entire Loop to recover,” Stone Real Estate Principal John Vance wrote in the report.
The Block 37 deal adds a lot of investment in Chicago stores in 2026. Water Tower Place received an infusion of $170M for redevelopment in April, and approximately 22K SF of stores at 500 N. Michigan Ave.
This acquisition is not Edwards Realty Co.’s first attempt to reposition a sizable Chicago-area retail property. In addition to the Core Acquisition, the company acquired the 200K SF Burr Ridge Village Center in suburban Chicago in 2019.
When Edwards acquired it, the property was about 60% owned. By 2025, following renovations and changes in the property’s tenant mix, occupancy will exceed 95%.
“We do not acquire property to maintain the status quo, and the building formerly known as Block 37 is no different,” Hassan said in a statement. “We got it because we believe it can be one of the defining destinations of Downtown Chicago.”