Chicago Mall Sold for $30 Million in Major Price Drop
New owners purchased the 278,000-square-foot Block 37 property, marking a significant decline from its 2012 acquisition cost.
Updated on Oct. 7, 2026 in Commercial
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Edwards Realty Co. acquired the Block 37 shopping mall for $30 million in a deal that highlights shifting valuations in Chicago's downtown retail sector. The property currently operates with 65% occupancy.
Why it matters
The sale reflects a substantial loss for previous owners, as the property was acquired for nearly $84 million in 2012 and saw a majority stake purchase of over $135 million in 2019. The new ownership team plans to reposition the site as an experiential destination.
The $30 million sale price is a sharp decline from historical valuations, including a 2019 deal that valued a 51% stake at more than $135 million. The facility serves a market where State Street's retail vacancy rate was 28.8% in 2025, down from 35% in 2024.
The players
Edwards Realty Co.
A real estate firm that manages and develops commercial properties.
CIM Group
An investment firm that manages real estate assets and infrastructure.
Morguard
A real estate company that owns and manages a diverse portfolio of commercial and residential assets.
The details
The transaction was facilitated by Republic Bank, LFI Energy, and The Rose Family Office. Edwards Realty Co. aims to modernize the 278,000-square-foot mall by adjusting lease terms and diversifying the tenant mix to compete in the current downtown Chicago climate. This move comes as the area continues to navigate high storefront vacancy rates.
Timeline
2012: CIM Group acquired the property.
2019: Morguard acquired a 51% stake for more than $135 million.
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.
Money Landscape
This transaction underscores a reset in commercial real estate valuations within Chicago's central business district. It follows years of volatility that pushed State Street retail vacancy rates as high as 35%.
For local households and business owners, this sale may signal new leasing opportunities or changing retail options in the downtown core. Prospective commercial tenants should watch for upcoming announcements regarding the property's new tenant mix and identity.
The takeaway
Commercial property valuations in downtown areas are currently undergoing a significant transition, reflecting broader shifts in retail demand. Local decision-makers should monitor public property records or municipal redevelopment announcements for updates on how this specific space impacts the Loop's business environment.
Further reading
For broader insights into how local business districts are changing, read more about the Chicago Commercial sector.
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Do you believe retail areas in your city are finally starting to recover and improve?
