Block 37
Block 37 is a mixed-use retail, residential, entertainment, and transit development occupying a historic square block in Chicago's Loop.
Last updated October 14, 2026
AI crawler reads
No AI crawler has read this profile since Oct 28, 2026.
Overview
Block 37 is a mixed-use urban development in the Loop area of downtown Chicago, occupying the square bounded by West Randolph Street, North State Street, West Washington Street, and North Dearborn Street. The name refers both to the site and to the completed development, which replaced a group of historic commercial, office, theater, and institutional buildings. The block was one of the 58 original blocks included in James Thompson's 1830 plat of Chicago, giving the site an unusually direct connection to the city's early civic and commercial history. By the late nineteenth and early twentieth centuries, Block 37 had become a dense downtown urban block containing theaters, offices, retail businesses, and civic-oriented facilities. In 1973, Mayor Richard J. Daley announced an urban-renewal initiative focused on the North Loop theater district. Subsequent plans envisioned a large mixed-use complex combining State Street retail with hotels, offices, and residences. Public financing and redevelopment authority were strengthened in the 1980s through the North Loop tax-increment financing district established during Mayor Harold Washington's administration. The site's redevelopment became controversial. Existing structures were cleared in 1989 after the city removed landmark protection from the McCarthy Building, despite opposition from preservationists. Several proposed projects subsequently failed because of financing problems, changing development strategies, and disputes among public authorities and private developers. For much of the period from 1989 to 2005, the block remained largely vacant. A temporary arts program called Gallery37, associated with After School Matters, used the cleared site for youth arts instruction before relocating when construction resumed. The Mills Corporation won development rights and acquired the property from the city in 2005. Its plan called for retail and entertainment space at lower levels, together with residential, hotel, and office components above. Construction began in November 2005, but the project encountered rising costs, tenant and contractor concerns, and the broader financial problems of Mills. Joseph Freed and Associates later acquired important development rights, particularly for the retail and residential portions. Construction interruptions in 2006 and continuing legal and financial disputes made completion uncertain. Freed's financial difficulties culminated in a 2009 default and foreclosure proceedings involving the retail and transit portions of the project. CB Richard Ellis was appointed receiver, Bank of America later took control through a foreclosure sale, and CIM Group acquired the shopping-center component in 2012. Despite the troubled development history, the above-ground complex was ultimately completed in phases. The finished project includes substantial retail, dining, entertainment, office, and residential space. The residential tower, known as The Marquee at Block 37 or 25 West Randolph Street, was completed in 2016 and contains 690 units. Block 37 also includes a partially completed underground transit facility. The original proposal was a CTA superstation connecting the Red and Blue Lines and supporting faster airport access. Cost escalation and the lack of funding for the proposed express service led the CTA to cancel the station project after a substantial underground shell had been built. A pedestrian connection between the Red and Blue Line stations opened through the development in 2009, and the transfer was made free in 2013. A later proposal by The Boring Company to build an airport express system using Block 37 as its downtown endpoint did not result in a completed system in the reference material. Today, Block 37 functions as a downtown mixed-use destination rather than as a conventional standalone consumer brand. Its identity is tied to its location, architecture, retail and residential offerings, and role within Chicago's central business district. It sits near the Richard J. Daley Center, Chicago City Hall, the former Marshall Field and Company Building, the James R. Thompson Center, State Street retail, and the theater district.
History
Block 37 occupies one of Chicago's original surveyed city blocks. In 1829, commissioners appointed James Thompson to survey and plat the emerging settlement around the proposed Illinois and Michigan Canal. The plat filed on August 4, 1830, established the layout that became the basis of Chicago's municipal development, including the block later identified as Block 37. Its location between the State Street retail corridor, the civic complex, and the Randolph Street theater district made it a representative site in the city's commercial history. Before the Chicago Fire, the block contained major theater activity. During the late nineteenth and early twentieth centuries, the area was rebuilt and intensified with offices, shops, theaters, and institutional uses. By 1970, eleven buildings occupied the block, including theaters, offices, a YMCA, and the Stop & Shop grocery store. The block's central position made it a target for large-scale urban renewal. In 1973, Mayor Richard J. Daley promoted a redevelopment program for the North Loop theater district, and later plans proposed a retail mall supported by hotel and office towers. Public involvement increased in the 1980s. Mayor Harold Washington approved a $24 million subsidy for FJV Venture in 1987, while the North Loop tax-increment financing district created in 1983 supplied a continuing public-finance mechanism and helped facilitate property assembly. Nevertheless, competing private proposals repeatedly failed. The city and developers considered several tower configurations, including a Murphy/Jahn scheme, a Solomon Cordwell Buenz plan with a very tall residential tower and Marriott hotel, and a Kohn Pedersen Fox design. None progressed to completion. The most contentious phase began with demolition in 1989. The city approved clearance of the block to make way for a large mixed-use project containing retail, hotel, office, and residential functions. The McCarthy Building, recognized as a Chicago Landmark, lost its landmark status before demolition. Preservation groups challenged the decision, but the Illinois Supreme Court determined that the private groups lacked standing to contest the city's action. The cleared site then remained mostly vacant for approximately sixteen years as successive redevelopment schemes collapsed. The Mills Corporation eventually won a city competition for development rights and purchased the property on November 11, 2005. Groundbreaking followed on November 15. The proposed complex was organized around lower-level retail and entertainment space, with three principal structures: a residential condominium tower, a hotel tower, and a broadcast-center tower intended for CBS-owned WBBM-TV. The exact mix changed over time, including discussion of replacing the hotel with another residential building. The planned complex was designed with transparent street-level facades and a large retail and entertainment base. Financial and organizational problems soon disrupted the project. Mills faced losses on other developments, liquidity pressure, and an SEC accounting investigation that became formal in 2006. At Block 37, contractors suspended work because of payment concerns, and prospective tenants reconsidered commitments. Disputes also developed between Mills and Golub & Co. regarding office leases, floor-area measurements, development approvals, and rights to the residential portion. A court ruling permitted Mills to end Golub's residential-development contract and transfer that portion to Joseph Freed and Associates. By 2009, Freed had run out of money and technically defaulted on project financing. Lenders sought foreclosure over the retail and transit portions. A court removed Freed's development rights in November 2009 and assigned responsibility to CB Richard Ellis as receiver. Freed was later found personally liable for a portion of the costs. Bank of America acquired the property at a 2011 foreclosure sale, and CIM Group completed an acquisition of the shopping-center portion in April 2012. The completed development consists of retail, dining, entertainment, office, and residential elements. The residential component was ultimately delivered as The Marquee at Block 37, a 38-story, 690-unit tower completed in 2016. The development also incorporates part of the Chicago Pedway and an underground transit structure. The original CTA superstation concept would have connected the Red and Blue Lines and supported airport express service, but cost overruns and the absence of financing for the larger express system led to cancellation. Approximately a station shell remained underground, while a pedestrian connection between the existing lines opened in 2009 and became free to use in 2013. Block 37 therefore represents both a functioning downtown mixed-use complex and a long-running case study in Chicago redevelopment. Its history combines historic preservation disputes, public subsidies, failed development proposals, corporate financial distress, foreclosure, changing ownership, residential construction, and incomplete transportation infrastructure.
- 2018
Chicago Express Loop proposal announced
[1]The city selected The Boring Company to negotiate a proposal for a privately funded airport express service using Block 37 as its downtown endpoint.
- 2016
The Marquee residential tower completed
[1]The 38-story, 690-unit residential tower at 25 West Randolph Street was completed.
- 2013
CTA Pedway transfer becomes free
[1]The CTA eliminated the additional transfer charge for the pedestrian connection between the Red and Blue Lines.
- 2012
CIM Group completes acquisition
[1]CIM Group completed its purchase of the shopping-center portion from Bank of America.
- 2011
Foreclosure transfers control to Bank of America
[1]Bank of America acquired the property through a foreclosure-related credit bid.
- 2009
Receiver appointed and Pedway connection opened
[1]A court removed Joseph Freed's development rights, appointed CB Richard Ellis as receiver, and authorized partial opening of the underground pedestrian connection and first-floor retail.
- 2005
Mills Corporation acquires and begins redevelopment
[1]Mills acquired the property from Chicago and formally broke ground on the mixed-use project in November.
- 1991
Gallery37 arts program begins
[1]Maggie Daley's nonprofit began offering visual-arts classes for teenagers in tents on the cleared site.
- 1989
Existing buildings demolished
[1]The block was cleared for a proposed large-scale mixed-use redevelopment after the McCarthy Building lost landmark protection.
- 1983
North Loop tax-increment financing district created
[1]The district provided a public-finance framework for urban renewal and property assembly.
Products and positioning
A centrally located Chicago Loop mixed-use destination combining retail, dining, entertainment, offices, residences, and connections to downtown transit.
Shopping center · 2009
Block 37 retail and entertainment complex
The lower levels of Block 37 were planned and built as a downtown retail, dining, and entertainment destination. The design emphasizes transparent street-level facades and prominent corners, connecting the development to State Street and the surrounding Loop districts. The overall plan contemplated approximately 400,000 square feet of retail, entertainment, and dining space, alongside substantial office accommodation.
Residential apartments · 2016
The Marquee at Block 37
The Marquee at Block 37, also identified as 25 West Randolph Street, is the completed residential tower associated with the redevelopment. The 38-story building contains 690 residential units and forms the principal residential component of the modern complex.
Transit and pedestrian infrastructure · 2009
Chicago Pedway connection
Block 37 contains a segment of the Chicago Pedway linking the vicinity of the CTA Red Line's Lake station with the Blue Line's Washington station. The connection opened in 2009 and the CTA made the transfer free in 2013.
Transit infrastructure
Block 37 superstation shell
The original redevelopment included an underground CTA superstation intended to connect the Red and Blue Lines and support airport express service. The project was canceled after cost escalation and funding problems, leaving a partially completed underground structure rather than a functioning express station.
Controversies
2007
Development-rights and leasing litigation
Golub & Co. became involved in litigation with Mills over office-space measurements, Morningstar lease arrangements, required city approvals, and rights to the residential portion of the project. The dispute ultimately enabled Mills to terminate Golub's residential-development contract and transfer that component to Joseph Freed and Associates.
2006
Mills Corporation financial and accounting difficulties
Mills faced losses on failed projects, liquidity pressure, and a Securities and Exchange Commission accounting investigation that became formal. These problems contributed to uncertainty surrounding Block 37's construction and leasing.
1989
Demolition and landmark-preservation controversy
The clearance of Block 37 generated significant public opposition, particularly because the McCarthy Building was stripped of landmark status before demolition. Preservation groups challenged the city's action, but the Illinois Supreme Court held that the groups lacked standing to bring the challenge.
Brand decisions
2018
Pursue a privately financed airport express conceptStrategyBackground
The CTA superstation and earlier airport-express concept had been canceled after cost escalation and inadequate public funding.
Action taken
Chicago selected The Boring Company to negotiate a privately financed rapid-transit proposal connecting Block 37 with O'Hare International Airport.
Aftermath
The reference material describes the proposal and negotiation selection but does not establish that the system was constructed or entered service.
2012
CIM Group acquires the shopping-center componentM&ABackground
Bank of America controlled the property following foreclosure.
Action taken
CIM Group completed a negotiated purchase of the approximately 305,000-square-foot shopping-center portion.
Aftermath
The transaction established CIM Group as the principal owner associated with the completed retail component.
2009
Receiver appointed after developer defaultOtherBackground
Joseph Freed and Associates ran out of money and faced foreclosure proceedings over the retail and transit portions.
Action taken
A court removed Freed's development rights and placed the project under CB Richard Ellis as receiver.
Aftermath
Bank of America later acquired the property through foreclosure, followed by CIM Group's acquisition of the shopping-center component.
Construction loan balance reported in foreclosure litigation. $205 million original construction loan; $128.5 million reportedly owed as of August 25, 2009 (2009)
2005
Mills Corporation selected as master developerStrategyBackground
After multiple failed plans, Chicago conducted a competition for development rights.
Action taken
The city selected Mills, which purchased the property and began construction of a retail-led mixed-use complex.
Aftermath
Construction encountered financial, leasing, and contractor difficulties, and development rights were later transferred among several parties.
1989
Clear the historic block for mixed-use redevelopmentStrategyBackground
City officials and developers sought to replace a densely built historic block with a large project combining retail, hotels, offices, and residences.
Action taken
The city approved demolition, including the McCarthy Building after its landmark designation was removed.
Aftermath
The proposed redevelopment did not proceed immediately, and the site remained largely vacant until construction restarted in 2005.
Recent events
- 2018
The Boring Company selected to negotiate an airport express proposal[1]
Other
Chicago announced that The Boring Company had won a competition to negotiate a privately financed rapid-transit link between Block 37 and O'Hare International Airport.
- 2016
The Marquee at Block 37 is completed[1]
Product launch
The 38-story residential tower at 25 West Randolph Street was completed with 690 residential units.
- 2012
CIM Group acquires the Block 37 shopping-center component[1]
M&A
CIM Group completed its acquisition of the approximately 305,000-square-foot shopping-center portion from Bank of America.
- 2011
Bank of America forecloses on the troubled development[1]
Bankruptcy · Other
Bank of America acquired the property through a sheriff's foreclosure sale after the project encountered loan and development difficulties.
- 2006
Contractors halt work amid payment concerns[1]
Other
Construction was interrupted as contractors expressed concern that they might not be paid, reflecting the project's mounting financial and scheduling problems.
- 2005
Mills Corporation begins construction of the Block 37 redevelopment[1]
Other
The Mills Corporation formally began construction of the planned mixed-use redevelopment after winning the city's development competition and acquiring the property.
Sources3 sources
Cite this profile: Cite the canonical profile. /brand-wiki/108-north-state-street · Editorial policy · How profiles are compiled