CIM Group is testing the market for one of Chicago’s most prominent urban retail assets with a listing of the Block 37 vertical mall in the Loop.
Los Angeles-based CIM has hired JLL brokers Keely Polczynski, Michael Nieder, Dave Monahan and Caity Tirakian to market the five-story Block 37 property at 108 North State Street, CoStar reported.
The listing coincides with a down period for commercial real estate sales in Chicago, as high interest rates and lingering pandemic-related challenges continue to hinder investments. The retail sector, in particular, has been plagued by a spike in online shopping and reduced foot-traffic since the pandemic hit. Retail sales in Chicago have totaled $1.9 billion so far this year, on pace to fall well short of last year’s sales volume of $4.7 billion and $4 billion in 2021.
However, there have been some recent glimmers of hope outside of downtown. Last week, New York-based Nassimi Realty paid nearly $24 million for the Four Flaggs shopping center in Niles, and Atlanta-based RCG Ventures paid just under $17 million for the Grand Hunt Shopping Center in Gurnee. Those suburban sales followed Asana Partners’ acquisition of numerous low-rise buildings in Bucktown and Lincoln Park, totaling 16 retail spaces.
CIM Group bought the 277,000-square-foot Block 37 out of foreclosure for nearly $84 million in 2012. The property includes a 690-unit apartment tower, the Marquee at Block 37, which is not part of the offering. The mall is 70 percent leased and houses tenants including AMC Theatres, Zara, Sephora and Anthropologie.
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While it’s unclear how much CIM hopes to make in a sale, JLL is emphasizing the potential wave of new investments in the Loop, including Google’s plan to occupy 1.2 million-square-foot James R. Thompson Center.
JLL brokers are also highlighting opportunities for prospective buyers to navigate reduced office-use challenges in the area, with some developers eyeing conversions of older buildings into affordable apartments.
— Quinn Donoghue