Edwards Realty Purchased Block 37 Mall
New ownership of the Chicago landmark aims to modernize the property and attract new tenants to the downtown district.
Updated on Oct. 7, 2026 in Commercial
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Edwards Realty Co. has purchased the Block 37 shopping mall at 108 N. State St. for $30 million. The 278,000-square-foot property is currently 65% occupied as the owners look to revitalize the space.
Why it matters
The sale marks a significant change for the Chicago Loop, as the new owners seek to transform the struggling retail hub into a competitive experiential destination. This repositioning effort comes as the area works to recover from high commercial vacancy rates.
The property sale for $30 million follows a 2019 transaction where a majority stake was valued at more than $135 million. While the mall remains 65% occupied, the surrounding State Street corridor has seen vacancy rates improve from 35% in 2024 to 28.8% in 2025.
The players
Edwards Realty Co.
A real estate firm specializing in the acquisition and repositioning of commercial assets.
CIM Group
A real estate investment firm that previously owned and managed the Block 37 shopping mall.
Morguard
An international real estate investment and property management company.
The details
Edwards Realty Co. completed the acquisition alongside Republic Bank, LFI Energy, and The Rose Family Office to gain control of the 278,000-square-foot site. The new ownership intends to overhaul the property by offering more flexible lease terms and curating a broader tenant mix. This strategy aims to shift the mall from a traditional retail footprint to a modern experiential destination for the downtown Chicago community.
Timeline
2012: CIM Group acquired the property out of foreclosure.
2019: Morguard acquired a 51% stake in the property.
2024: State Street retail vacancy rate reached 35%.
2025: State Street retail vacancy rate dropped to 28.8%.
October 6, 2026: Edwards Realty Co. acquired Block 37.
The Home Front
The acquisition of Block 37 follows a multi-year trend of high retail vacancy in downtown Chicago that has forced significant repricing of major commercial assets. This shift mirrors broader efforts by city landlords to convert underperforming square footage into modern, experiential hubs.
Chicago residents should watch for upcoming announcements regarding new tenant openings that may change the local retail landscape in the Loop. Those with an interest in local property values or urban development can monitor the site for the unveiling of the property's new brand identity.
The takeaway
The transformation of major downtown assets like Block 37 serves as a bellwether for the recovery of city-center retail activity. Residents and business owners should monitor the progress of the renovation to see if the new tenant mix improves foot traffic in the Central Loop.
Further reading
Explore more news regarding regional business developments in our Commercial section.
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