Buyers bet on future of downtown Chicago retail as Block 37 and The Maxwell sell at low cost

Two major Chicago retail properties have changed hands at significantly low costs, highlighting both the challenges facing downtown shopping centers and renewed interest in the city’s central neighborhoods.

According to the Chicago Business Journal, Orland Park-based Edwards Realty Co. paid $30 million for Block 37, a five-story shopping center at 108 N. State St., and The Maxwell, a 240,000-square-foot center in the South Loop, sold for $15.3 million to Justin Ishbia’s Shore Capital Partners.

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Block 37 plans a major reset

Block 37 is about 65% occupied and includes Zara, AMC Theatres, Sephora, Banana Republic Factory Store, First Ascent climbing gym and Five Iron Golf, the Chicago Business Journal confirmed. Per Crain’s Chicago Business, Edwards plans to invest between $25 million and $30 million in phased renovations, while pursuing a new name and a broader mix of retail, restaurants, entertainment and daily-needs tenants.

Ramzi Hassan, president of Edwards Realty, said the property has strong fundamentals but needs to be reshaped for residents, tourists and downtown workers, Crain’s noted. The company also plans live music, art installations, brand partnerships and other regular programming.

“We believe in downtown Chicago, and at the right time, with the right business plan, we think there are a lot of exciting opportunities,” Hassan said, per Crain’s.

The purchase price was roughly one-third of the $84 million CIM Group paid for the mall out of foreclosure in 2012, Crain’s confirmed. Block 37 originally opened in 2009 after financial problems and tenant departures delayed its development.

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South Loop investment points to growth

According to the Chicago Business Journal, Shore Capital’s purchase of The Maxwell places the property next to The Railyards, a proposed mixed-use project from Ishbia’s Canal Edge development company. The plan could include housing, commercial space, and a new ballpark for the Chicago White Sox.

“We believe in the long-term future of the South Loop, and this investment reflects that,” Shore Capital said in a statement, per the Chicago Business Journal.

The deals come as Loop retail conditions show modest improvement. The vacancy rate fell to 28.53% in 2025 from 29.76% in 2024, according to Stone Real Estate data cited by Crain’s.

Retail broker Keely Polczynski said State Street is making progress, helped by Barnes & Noble’s opening in the former Old Navy space, the Chicago Business Journal confirmed. She also said construction around the State/Lake CTA project has slowed foot traffic and extended the recovery timeline.