CHICAGO | 108 North State (Block 37) [Archive] - Page 35

denizen467

Jul 9, 2012, 4:20 AM

Andy’s Frozen Custard, which has had a store in the pedway nearly two years, said it is closing Saturday, a day after company President Andy Kuntz promises to show up to dish out complimentary custard as a send-off.

Kuntz said “traffic was just not where it needed to be” for the Block 37 store. He said the chain’s other locations in Evanston, Bolingbrook and Oak Lawn are doing fine.
Meh, not such a big deal; I think Andy's was extremely mediocre and ice cream generally is just not as big a deal in Chicago as it is in places like Ohio (Graeter's) or Wisconsin (Kopp's), maybe because gelato and froyo have successfully nabbed a lot of the potential market. Plus, people-watching (and sitting around in front of the store for a short while in light banter with your friends) is a key part of the ice cream ritual, and their B37 space wasn't the best for those. Also, on hot days, the ice cream appetite is necessarily going to lessen as you spend several minutes making your way down to the lower level of an air-conditioned mall.

ardecila

Jul 9, 2012, 8:08 AM

Even Ohio and Wisconsin have froyo now, and ice cream is certainly popular in other areas of the city. I think the locational factors are more relevant... who's gonna take a concrete on the Blue Line? Beard Papa's seems to attract a certain clientele of Asians who seek out the place, and Starburst is always empty when I walk by.

I think a bakery would work pretty well down there - sorta like a Panera, but quicker and without all the seating or complex sandwiches. I remember these guys (http://www.stroeck.at/) were all over the underground spaces in Vienna. Le Pain Quotidien comes close, but the pretentiousness is so thick you could cut it with a knife - I doubt they'd be interested in a basement, and they haven't reached Chicago anyhow. Maybe a Corner Bakery?

bnk

Jul 13, 2012, 7:53 PM

www.chicagotribune.com/business/breaking/chi-could-block-37-get-a-blues-museum-20120713,0,1872774.story

Could Block 37 get a blues museum?

12:37 PM CDT, July 13, 2012

From Crain's Chicago Business: Block 37, what with its shopping center vacancy rate and troubled history, has long had the blues. This time, though, it may get them in a good way. A couple of executives want to open a blues museum and nightclub on the site, according to anonymous sources. For the full story: chicagobusiness.com

SamInTheLoop

Jul 13, 2012, 7:55 PM

Article in Crains today about a ridiculous (and downright goofy) plan by a couple of yahoos to launch some type of Blues "experience" at block 37 as a de facto anchor. Most publicized ideas over the last many years for Block 37 have actually been pretty good - it's the execution that has been terrible (for many reasons). This one is actually the exception - it's a hilariously bad idea, and would be a guaranteed epic fail from the word "go"....hopefully the new landlord is laughing this one off as well they should!!

^ (just beat me to it, bnk!)

the urban politician

Jul 13, 2012, 7:59 PM

^ Gotta agree.

I think the Blues Museum is a terrible idea, like all "Blues-themed" things they try to concoct for this city.

Just build the damn movie theater that everybody keeps asking for!

Vlajos

Jul 13, 2012, 9:04 PM

I agree about the "Blues Museum", sounds like automatic fail.

Who goes to movies these days? I don't think that will last either.

ardecila

Jul 13, 2012, 9:06 PM

Well... Jazz at Lincoln Center has been very successful, even if some purists don't like how slick it is. Of course, they were a strong organization before their space was built in Time Warner Center - the Chicago project is trying to create an organization from scratch to fit the Block 37 space.

I was hoping for the Motor Row area to become the musical destination, but it could actually end up being a carbon copy of Beale Street, which doesn't serve our city very well. The blues came to Chicago and got transformed as it encountered an industrial society with modern technology - it got electrified and picked up a whole new swagger.

From a branding perspective, I think it could work really well if it doesn't try to imitate the world of smoky blues bars and juke joints but pushes for something new and contemporary.

intrepidDesign

Jul 13, 2012, 9:10 PM

^ Gotta agree.

I think the Blues Museum is a terrible idea, like all "Blues-themed" things they try to concoct for this city.

Just build the damn movie theater that everybody keeps asking for!

Amen. I've always thought a Village Roadshow/Gold Class Cinema would fit nicely into the space as opposed to some derivative of a 20 screen megaplex. It's a drinks/dinner/movie destination all in one and as far as I know, there are no downtown locations. These hokey ideas for Block 37 are beyond frustrating and doomed to fail. I wish they would just keep it simple.

ChiPhi

Jul 13, 2012, 11:11 PM

I side more with ardecila on this one. A jazz museum or some Disney set of an old jazz joint prObably won't do well, but some nightlife (contemporary with a jazz twist) could steal from the lines at the eit's roof pretty well and add some real vitality to the loop.

SamInTheLoop

Jul 15, 2012, 11:10 PM

I agree about the "Blues Museum", sounds like automatic fail.

Who goes to movies these days? I don't think that will last either.

A lot of folks. Movie theaters aren't going anywhere, at least not for a long time. Not a real growth industry by any means (total revenue pretty flat in recent years, in real terms), but for well-located, state-of-the-art theaters that offer a real experience, there's some pretty significant, sustainable demand. For commodity-type (or worse, outdated) cineplexes in areas with middling demographics, prospects are farily dim indeed.

I'm not sure if many people realize to what extent downtown Chicago (and the entire city for that matter) lack movie theaters relative to the underlying demand, and the city has been undersupplied for decades. It's a real shortage, and to my surprise it's only been addressed very gradually over the years. Greater downtown could definitely support another 4-5 movie theaters with an average of 12-15 screens each. Probably a similar number, or even a little more for the rest of the city.

The new (well now probably going on 3 years old) theater on Roosevelt in the South Loop quickly reached some of the highest productivity numbers of theaters nationwide. Think about this for a moment. Since it opened, it has sat at the very end (furthest from the road) of a shopping center that has otherwise been 100% vacant from that point. And yet it produces massive numbers. This speaks direclty to the peculiar and severe supply/demand mismatch of movie theater screens in Chicago.

And no, better home theater systems and greater movie availability in the home won't change this. It will be important, however, for the new theaters that are added downtown and throughout the city over the coming decade, to employ the very latest in technology (and for the industry to continue to push that envelope), and for that matter, for the existing theaters to periodically refit with newer technology.....

SamInTheLoop

Jul 15, 2012, 11:23 PM

Amen. I've always thought a Village Roadshow/Gold Class Cinema would fit nicely into the space as opposed to some derivative of a 20 screen megaplex. It's a drinks/dinner/movie destination all in one and as far as I know, there are no downtown locations. These hokey ideas for Block 37 are beyond frustrating and doomed to fail. I wish they would just keep it simple.

Couldn't agree more. I've long thought about the potential for Gold Class at Block 37. Would be a great fit. Also, something along the lines of the Century Theaters multiplex in downtown Evanston would work quite well. Think about it - how ridiculous is it that there's a movie theater in the heart of downtown Evanston but there isn't (Siskel is phenominal of course, but doesn't count here, as it's very small, and very niche) in the heart of downtown Chicago (in the Loop).

Also, you're exactly right - we don't need these big outside the box dreams for Block 37, and we never have. That type of thinking and effort serves mainly as distraction. We do need something serves these various workaday needs (apparel and accessories, other specialty retail, entertainment, dining, some convenience) for which there is demand for in the Loop that is not currently being satisfied by existing suppy. The opportunities are clear, large and waiting to be satisfied. And it all needs to be sufficiently upscale - and by that I mean not value-oriented. To that end, I was a little disappointed that Old Navy is going in the old Borders space right across Randolph from Block 37 (I think the owner could have done better there for the street), but at least it's a vacancy that's being filled quickly.

Above all, most importantly is that the city needs to not be involved any more with Block 37 (accept for administrative things, like enforcing any tenancy requirements that are already in place, or any additional approvals that would be needed for the future residential/hotel phases). The city has been a clear net negative 'partner' in the history of the block when it's tried to shape the 'vision', or the retail/entertainment concepts involved. It should really stay out of it from here on out, and I think it will, as it really doesn't have a defined legal role in the existing building in this regard, ie it can't arm-twist to try to force some goofy concept into the shopping center, such as this Blues Schlock.....

ardecila

Jul 16, 2012, 12:07 AM

I agree on the need for movie theaters within the city, but I'd prefer ones in the neighborhoods that are located near rail and provide an alternative/extra depth to the bar & restaurant scene. Right now, the megaplexes outside of downtown tend to be in marginal areas... AMC City North? Galewood? Etc.

I'd love to see that awful strip mall at Belmont/Kimball redeveloped into a mixed-use area with a movie theater and a CityTarget.

spyguy

Aug 1, 2012, 5:35 PM

http://www.chicagotribune.com/business/breaking/chi-alternative-shoes-latest-closure-in-block-37-20120801,0,3388826.story

Alternatives Shoes the latest closure in Block 37
By Corilyn Shropshire August 1, 2012

Alternatives Shoes has closed its outpost in Block 37, making it the third business to shutter in the troubled State Street shopping center in two months.

In June, Auntie Anne’s Pretzels and Andy’s Custard closed their Block 37 outlets, both cited low foot traffic in the mall’s lower-level pedway which leads to the CTA’s Blue and Red line trains.

Rizzo

Aug 1, 2012, 6:10 PM

Au Bon Pain and Which Wich are always swamped with patrons during lunch. Sometimes the lines extend out into the concourse. I hope they can continue to build an A-list roster though I still cite some design factors into the mall's poor performance.

ardecila

Aug 2, 2012, 1:10 AM

Yea as I mentioned above, quick joints to grab breakfast or lunch could do well down there.

Sucks about Alternatives... They had some nice stuff.

SamInTheLoop

Aug 2, 2012, 2:33 PM

^^^ I think (hope?) CIM Group realizes that they don't have the luxury of time with their comprehensive asset repositioning/merchandising plan that they are currently working toward launching. The dynamic of Roosevelt Collection isn't there, in which the new owners could take their time, around a year (from the time McCaffery closed on its purchase of the distressed center in that case) before really making obivous, substantial visible progress. In that case, there was only one existing tenant, and that happened to be very unique in that it was a very successful, anchor tenant, that (though undoubtedly hardly happy that it has taken so incredibly long to be joined by any additional tenants!) can be considered quite stable and secure. Clearly, Block 37 is much different. Frankly I'm surprised it's taken this long for the smattering of early existing tenants to begin to close up shop. This is a critically ill center, and it's about to go on life support. CIM needs to move with an acute sense of urgency, with bold plans. While I don't disagree that the design may not be ideal (hopefully CIM's new signage strategy will be successful in addressing some/most of these issues), the overwhelming problem is simple: low traffic because three-quarters of the center is empty! CIM needs to get real traffic drivers signed on (and open) for the 4th and 3rd floors most importantly, and formal restaurants (such as for the space where Rosa Mexicano was originally planned) - and soon! Time is of the essence, and they need to be prepared to quickly invest major capital (this is where buying the project for only $80-85 million comes in handy!) in this repositioning and fast-track tenant build-outs.

J_M_Tungsten

Aug 2, 2012, 2:43 PM

What block 37 needed, IMO, was a taller commercial or residential tower, with lower floor retail. I would say something similar to "Aura" in Toronto. Another boring mall with no people around other than tourist, was doomed to flop. Yet another fail in block 37's shit history..

xXSkyscraperDudeXx

Aug 2, 2012, 6:45 PM

Sorry to interrupt your conversation, But could anyone tell what's this Block 37?

ChiPhi

Aug 2, 2012, 7:16 PM

The wikipedia (http://en.wikipedia.org/wiki/108_North_State_Street) pretty much covers it...

MayorOfChicago

Aug 2, 2012, 11:36 PM

I walk through on the Pedway twice a day and walk around it at lunch as well when visiting Daley Plaza, State Street, blah blah. I was walking to the Red Line today and glancing over at Block 37 - and rolling my eyes at how damn ugly and poorly planned the whole thing was. You can't even tell what the hell it is from the outside except a large grey box with hardly any windows, decent architecture or signs. There are a few stores signs and windows, but you basically have to stop and want to see what it is.

The place was a disaster from a design standpoint. A huge one-block open area right in the heart of downtown and they go throw up a large metal box.

The pedway area looks decent, the upstairs view from the bottom looks cool enough. Honestly though in however many years I've been walking through there - 3? I've never once had any urge to go upstairs, even to the first floor. I wish they would have incorporated the Blue/Red line mezz areas into the design and the pedway area. Right now they're TOTALLY disconnected by those damn doors that are always shut, swing in your face and really distrupt the flow of the place. You have to go out of your way to enter and then exit as you walk. Would have been better to try and environmentally control the mezz areas somehow and then open up the train station to the pedway more. Not saying it has to be totally barrier free, but maybe more people would wander in from the trains if it didn't look like you were going out of your way to visit a mall or something. Give it a hint of flow between trains and Block 37. Make it seem like a complex like they do in DC and other cities. Merch Mart and Thompson Center are all we have where the buildings and trains aren't totally alienated from each other.

No surprise Aunt Anne's died. The place mostly has commuters and office people passing through in the morning/evening and then at lunch I suppose. Not exactly the type that's going to stop in for a pretzel. It's not your leisure crowd passing through. Same reason I don't get how places like the little telephone kisoks stay open.

As others said - there obviously needs to be some sort of DESTINATION in the place. You have to want to enter the building, and hopefully on one of the top floors. I don't really think there's a strong central atrium/focal point inside either. Kinda loses some of the "wow" or community center aspect if there was at least a nice people watching and a gathering point.

Sad. Rip apart a few floors and put in a casino, throw in a nice hotel tower, a residential tower and you'll have something.

J_M_Tungsten

Aug 3, 2012, 2:49 AM

So well put mayor. I couldn't have said that any better!

SamInTheLoop

Aug 3, 2012, 4:43 PM

While I agree that clearly the retail base (everyone should keep in mind that this is very much still a work in progress, as there's something like I believe an 800,000 sq ft or so high-rise component that's still to come - yes, it really will happen!!) of Block 37 missed many opportunities and is generally off the mark from a design standpoint (I mean, who doesn't prefer Ralph Johnson earlier design.....it was fantastic compared with what we ended up with), the design issues really are peripheral to the lack of retail economic success for the project to-date. The causes of that are completely project finance and debt-driven, with an acrimonious, drawn-out battle between the previous developer and lenders, and nobody having the capital, or willing to place it, into necessary tenant build-outs, and all of this scaring off potential tenants, and keeping them away for the past few years. All this time, with only 20-25% of the center leased, and the vast majority of upper floors completely empty, obviously foot traffic throughout and up the interior has been miserably low. It's tempting for us urban planning/design and architecture enthusiasts to attempt to explain all real estate economic success or failure with planning or design factors. In reality, at least in the case of Block 37, these factors are not at all the primary drivers with respect to it being a marked marketplace dud to this point in time....

ardecila

Aug 3, 2012, 5:05 PM

Both the Thompson Center and Merchandise Mart have doors between CTA turf and privately-controlled turf. Having a rolling door for the occasional closure and an air barrier for environmental would create a better flow, though, I agree.

the urban politician

Oct 27, 2012, 8:51 PM

This was said by Block 37's current owners, CIM Group, in July:

“The company is currently working on a comprehensive repositioning strategy for the property which includes a merchandising plan, evaluating the tenant mix, and implementing a rebranding and property signage program that will commence this fall. “

Okay guys, it's Fall now.

Was in Block 37 yesterday. No signage, no evidence of any leasing activity, just the same old ho hum.

When does this so-called "repositioning strategy" begin?

ardecila

Oct 27, 2012, 10:39 PM

Can we move this out of Building Construction?

This building is complete, for all intents and purposes - leasing and tenant build-out is another thing entirely.

xXSkyscraperDudeXx

Oct 28, 2012, 1:14 AM

Agreed :previous:

kemachs

Oct 28, 2012, 5:32 PM

If the residential / hotel tower portion goes forward at some point, does this just jump back into the u/c category? Or would that be a new thread?

denizen467

Oct 29, 2012, 4:46 AM

The projects of sufficiently different character and minimal connection to one another that I think there would be little reason to have them in the same thread. Besides, why not confine all the bad karma to this one thread and keep it from infiltrating the clean slate of a new tower -- and the relatively rare opportunity for a new high-rise in the central Loop (within the elevated's boundaries).

spyguy

Nov 9, 2012, 4:59 AM

http://www.chicagorealestatedaily.com/article/20121107/CRED03/121109805/block-37-owner-eyes-hotel-housing-towers-atop-loop-mall

Block 37 owner eyes hotel, housing towers atop Loop mall
By: Micah Maidenberg November 07, 2012

The new owner of the Block 37 shopping center has acquired the rights to develop hundreds of new hotel rooms and apartment units above the Loop structure, a step toward fulfilling the original vision for a dense mixed-use project at the star-crossed property.

A venture of Los Angeles-based CIM Group bought the rights from an affiliate of Minneapolis-based U.S. Bank N.A. in late September for $5.8 million, county records show. The bank took over the development rights August 2011, a little more than year after filing a $16.8-million foreclosure suit against their previous owner, Chicago-based Joseph Freed & Associates LLC, the developer of the mall across from Macy's.

Before losing Block 37 to Charlotte, N.C.-based Bank of America Corp. two years ago, Joseph Freed had planned a Loews hotel above the shopping center, at Randolph and Dearborn streets, and a residential tower, with either apartments or condominiums, at Randolph and State streets. Under current zoning, a developer could build as many as 400 residential units and 500 hotel rooms atop the building, according to the zoning plan that governs its development.

ardecila

Nov 9, 2012, 5:16 AM

Can we move this out of Building Construction?

This building is complete, for all intents and purposes - leasing and tenant build-out is another thing entirely.

Okay, news about the high-rises justifies keeping the thread alive. Maybe we should kick it back to Proposals and change the thread title?

BWChicago

Nov 28, 2012, 12:09 AM

Beard Papa's closed its doors yesterday. (https://twitter.com/ChiBeardPapa/status/273146936809357312)

the urban politician

Nov 28, 2012, 12:28 AM

^ Great "repositioning strategy" :rolleyes:

J_M_Tungsten

Nov 28, 2012, 12:30 AM

I walked through this place a couple weeks ago for the first time in almost a year maybe. It really is lame. There are so few stores open, it's not worth going to.

Rizzo

Nov 28, 2012, 1:46 AM

It's now called "Block Thirty Seven"

And...

There is some wallpaper action going on where all those vacant storefront partitions are. The first floor seems somewhat busy on weekends, but the pedway seems to be stubborn holding tenants though Which Wich and Au Bon Pain appear to be doing very well.

Tom In Chicago

Nov 28, 2012, 5:14 PM

^There's a Thai place in the pedway that I've eaten at a few times actually. . . but I don't think this place is going to be at all successful until a residential or hotel component can add to the foot traffic. . .

. . .

jcchii

Nov 29, 2012, 2:41 PM

Going without a hotel was dumb
Maybe this is a fix

McShadyPL

Dec 17, 2012, 7:33 PM

Community Presentation for Block 37 Signage Proposal
December 3, 2012
http://www.ward42chicago.com/in_the_news.html

Alderman Reilly invites you to a community presentation for the amendment to the Planned Development that governs Block 37. The City has required the ownership of Block 37 to amend the Planned Development because their proposed signage package is in conflict with Chicago Zoning Ordinance. Prior to any hearing before the Chicago Plan Commission, Alderman Reilly requires a public meeting to inform area residents of the proposal and gather feedback.

This public meeting will address the specifics of the sign package which is designed to secure retail tenants suitable for this prominent location within our downtown core. The ownership of Block 37 will be present to answer any questions you may have. The Chicago Loop Alliance supports this amendment to this development and the proposed sign package.

WHAT: 108 North State Street - Block 37

WHO: Chicago Loop Alliance and the Friends of Downtown

WHEN: Monday, December 10th, 2012at 6:00 pm

WHERE: Block 37
108 N. State Street
http://www.ward42chicago.com/images/B37before.jpg
http://www.ward42chicago.com/images/B37after.jpg

Old news apparently, but this is at least a step in the right direction for attracting retail customers, albeit a minor one.

the urban politician

Dec 17, 2012, 8:51 PM

^ Fucking seriously? A community presentation to discuss 7 cloth banners?

Just approve the shit already. Anybody who actually comes to a meeting to discuss such minor things needs to find more important ways to spend their time....

And besides, what kind of half ass signage upgrade is that? As if all of a sudden retailers are going to come running....

Busy Bee

Dec 17, 2012, 11:56 PM

^For real. I thought they were proposing some giant LED signs befit of a vibrant retail and entertainment district. Obviously not. What a silly idea. Cloth banners oh yeah.

SamInTheLoop

Feb 22, 2013, 8:05 PM

I think it's been more than 10 months now since CIM Group closed on their purchase of Block 37. In the blink of an eye, it will be one year. They've certainly got nothing to show for themselves yet, hopefully they are not squandering precious time here. From my perspective, even given the very real challenges at hand, there would be absolutely no credible excuses for having purchased this project in April 2012 and not having it 75-85% tenanted and occupied in time for the 2013 holiday season. Time, she's a 'tickin............

Heard-on-the-street?
Rumors?
Innuendo?
Supposition?

Anybody got anything here?

Mr Downtown

Feb 23, 2013, 2:37 AM

Well, first they have to find suckerstenants who think that being hidden away inside a building is a good retail strategy.

ardecila

Feb 24, 2013, 4:05 AM

Beta_Magellan

Feb 24, 2013, 7:13 PM

Rizzo

Feb 24, 2013, 8:09 PM

The first story and pedway are decently rented-out—people on their way to and from work aren’t going to make a detour to the second story just because you’ve blocked off their access to State and Dearborn.

I'd like to point out that the rented spaces are either right by the entrance or have street access. Some of the basement locations are specialty fast casual. Which wich is the only landlocked tenant in that place that is extremely busy.

I don't think any level of demand is ever going to get this place completely back on track. It's basically another Chicago place. Busy street level stores and restaurants that cater to the loop workforce.

untitledreality

Feb 24, 2013, 8:12 PM

What if they closed the street stairs to the Red and Blue Line stations? People heading to the platforms would have to pass through Block 37. You'd need signage, of course.

Restrict access to a public amenity and force feed people through a failed real estate project owned by a private entity?

To hell with CIM Group and this project. They bought it, let them fix it.

sloop.chi

Feb 24, 2013, 8:26 PM

Rizzo

Feb 24, 2013, 8:41 PM

They need to develop a residential /hotel portion on the north end and add a multi entertainment component similar to the AMC in Streeterville. Mix in some restaurants and that should get the ball rolling.

I agree. At the same time, I think 'economic reasons' has become somewhat of a scapegoat for this property's failure. While I agree the timing was bad, the mall is just flat out terribly designed. The owners must accept this and consider whether a renovation is necessary to attract big-box type outfits on the upper floors and improve visibility of retailers on the lower levels.

Developers also need to come to terms that they can't be the next Water Tower Place. WTP was built in a time where large indoor malls made sense and were in vogue. Not anymore...where people prefer the street level convenience in downtown shopping districts. The only reason why WTP continues to be successful is because of their A-list roster of tenants and prestige. Block 37 must take a different route and shoot for something similar as sloop.chi mentioned. Tenants that need large amounts of space and double height ceilings.

Also, the addition of hotel or residential may allow subtraction of mall space for banquets and conferencing. I imagine holding a banquet on the 4th floor overlooking state street would be pretty damn marketable.

So to do this, they need to stop the wall decorating and sign modifying in the mall and move forward with renovating and reconfiguring the atrium once they've gotten the hotel and residential components locked down.

ardecila

Feb 24, 2013, 11:07 PM

Restrict access to a public amenity and force feed people through a failed real estate project owned by a private entity?

To hell with CIM Group and this project. They bought it, let them fix it.

You mean a real estate project that received substantial public assistance?

Taxpayers have skin in the game, too, so if CTA could help the mall succeed at no cost to CTA, that option should remain on the table.

untitledreality

Feb 24, 2013, 11:23 PM

You mean a real estate project that received substantial public assistance?

Taxpayers have skin in the game, too, so if CTA could help the mall succeed at no cost to CTA, that option should remain on the table.
There are already Block 37 Lake and Washington entrances, the job should be to making those a more attractive option than just dumping into the station from the street... not removing options.

Who cares that the city dumped money into the project? Will it improve CTA ridership by removing the easiest access points? Why risk adversely effecting ridership in an attempt to boost retail numbers at a indoor mall with inherent falls?

ardecila

Feb 25, 2013, 1:29 AM

Well, the ground floor is fully leased so I doubt it would make much of a difference. It won't help the upper floors. The basement has surprisingly high turnover given its location as a link between two subway stations and on the pedway system, so I don't really know what the problem is there. It might just be tenant selection - nobody knows what the hell a Beard Papa is, but a Popeye's might make a killing. A lot of CTA riders come from working-class communities and aren't interested in gourmet Japanese cream puffs.

The double doors at each end of the B37 basement are also a big psychological barrier. It would increase mall operating costs but it might be better to use air barriers for a completely open passage.

woodrow

Feb 25, 2013, 4:20 PM

^^ it is?? There is an empty store front on State Street, Alternatives is gone and there is a LOT of undeveloped space on the corridor towards Clark that has never been occupied.

the urban politician

Feb 25, 2013, 11:53 PM

I long ago proposed that the upper levels of this mall should be converted to another use. I still stand by that. If they build a hotel, then the upper levels can be devoted to hotel uses (restaurant/bar/meeting/ballroom/lobby, etc) space.

My guess is that CIM is taking a long time for this exact same reason. They are coming to the conclusion that they need to make a significant change, and perhaps they are planning exactly how they will reshape this project.

All I hope is that they eventually get things moving. State Street's revival needs it!

ardecila

Feb 26, 2013, 2:56 AM

^^ it is?? There is an empty store front on State Street, Alternatives is gone and there is a LOT of undeveloped space on the corridor towards Clark that has never been occupied.

Sorry, you're right. I meant that it's doing far better than the basement or upper floors.

If there's still an open space facing State, then I think we either need to blame economic conditions or an inept landlord. Seriously, why is the first floor not leased? Even the Dearborn side shouldn't be difficult. The Wabash side of Sullivan Center is fully leased, and that has less foot traffic than Dearborn.

Beta_Magellan

Feb 26, 2013, 3:09 AM

Wabash is already something of a secondary commercial street, while Dearborn barely has anything—there may be more foot traffic, but it’s the sort of foot traffic that’s going to look around and shop for stuff. People will go to Wabash to shop—they won’t go to Dearborn (there’s more residential along Wabash, too).

Rizzo

Feb 26, 2013, 4:00 AM

Sorry, you're right. I meant that it's doing far better than the basement or upper floors.

If there's still an open space facing State, then I think we either need to blame economic conditions or an inept landlord. Seriously, why is the first floor not leased? Even the Dearborn side shouldn't be difficult. The Wabash side of Sullivan Center is fully leased, and that has less foot traffic than Dearborn.

I wonder if they could get pop-up tenants, or are they too good for that? i mean the benefit of pop-up tenants is they can stay as long as they do very little modification to the white-box spaces and given short term leases. Sure the mall makes very little money from them, but it drives up traffic and potentially other business.

wierdaaron

Feb 26, 2013, 4:15 PM

At this rate they could move Taste of Chicago inside Block 37 and give each vendor their own retail unit for the week. I wouldn't need as much sunblock.

woodrow

Feb 26, 2013, 4:27 PM

Sorry, you're right. I meant that it's doing far better than the basement or upper floors.

If there's still an open space facing State, then I think we either need to blame economic conditions or an inept landlord. Seriously, why is the first floor not leased? Even the Dearborn side shouldn't be difficult. The Wabash side of Sullivan Center is fully leased, and that has less foot traffic than Dearborn.

Damn!! I was hoping you had some inside info!!

As to the State Street space, it is little. Very narrow frontage.

I also don't understand why Dearborn, and Randolph, haven't leased up. The foot traffic on both is high. Maybe on Randolph it is the uncertainty of possible construction interruptions (the apt/hotel tower). I assume that Randolph would be most affected by that,

SamInTheLoop

Mar 4, 2013, 3:24 PM

It was reported last week by commercial real estate industry newsletter Real Estate Alert that CIM just closed on $350 million of equity fundraising for an opportunistic (presumably heavily development/redevelopment-oriented) investment fund. With debt, my guess is that could be anywhere from perhaps $600 million - 1 billion of development/acquisition capital. Here's hoping that some of this gets allotted to the high-rise residential/hotel component of Block 37.......

LaSalle.St.Station

Mar 5, 2013, 6:34 AM

I'm in agreement that the indoor mall concept is a hard sell these days even if executed flawlessly in design. I think those who are pushing for a hotel solution are correct. The whole building plus the planned high rise portions should be redone as a hotel with base level retail. Basically a newer version of the Palmer House on State.

Busy Bee

Mar 5, 2013, 5:00 PM

^or this (http://www.zaha-hadid.com/architecture/galaxy-soho/).

ardecila

Mar 5, 2013, 7:00 PM

LOL that design's already been plagiarized.

I'll pass on the Zaha - her buildings are cool but I wouldn't want one in my city. Give me David Chipperfield or Jean Nouvel any day, though.

SamInTheLoop

Mar 29, 2013, 3:42 PM

Found it interesting that all new signage within the complex and promotional materials, etc no longer acknowledge the existence of the 4th floor........not sure what to read into this......several different possibilities, could be as meaningless as since there are no current tenants on the floor, this signage is 'temporary' (i don't think it's very well done and hope it's not intended to be longer-term) until CIM leases up the project......or of course, it could point to a few other - perhaps much more interesting - possibilities.....

wierdaaron

Mar 29, 2013, 4:51 PM

Maybe they're resurrecting the hotel fantasy, modified to only be one floor.

ardecila

Mar 29, 2013, 11:44 PM

I could imagine a situation where a floorplate is removed and the 3rd floor becomes double-height to host events or movies or something.

denizen467

Mar 30, 2013, 10:21 AM

Also, possibly hotel negotiations could lead them to dedicate the top podium floor to hotel ballrooms and guest amenities.

markh9

Apr 5, 2013, 5:19 PM

New tenant for the Pedway. 1 down, 2 to go.

http://i.imgur.com/WlXOZ9M.jpg

the urban politician

Apr 5, 2013, 5:29 PM

^ Looks like their silhouette of the skyline contains Trump Tower.

A lot of silhouettes still only have the Hancock and Willis. Nice to see that updated..

ardecila

Apr 6, 2013, 7:59 PM

Interesting. Chicago's pretty much banished this category of tourist-oriented gift shops/ticket shops from the Loop, except for 3 or 4 on Michigan. It's interesting that they're opening in the Pedway, though... I guess they're expecting tourists to arrive on the Blue Line.

SamInTheLoop

Apr 24, 2013, 3:51 PM

Since it hasn't been mentioned here yet, Crain's reported last week that the Block 37 Puma store may close. If it eventuates, obviously not great news in the very short-term, however their spot within the complex is so prime that it clearly would also present a great opportunity to land a real draw, a big tenant upgrade if you will. Also shouldn't be difficult at all to land a tenant, more a matter of strategically selecting the right one...

Mr Downtown

Apr 24, 2013, 5:34 PM

Undoubtedly that's also the situation at Citadel Center (130 S. State) down the street. That big retail space between Akira and Starbucks remains vacant because they're strategically selecting the right one . . .

SamInTheLoop

Apr 25, 2013, 8:16 PM

^ Clearly there's something wrong with that particular space.....either it's unusually designed for streetfront retail such that it's a big turn-off for prospects or some other peculiarity at work, or the other potential would be the marketing of it/ownership motivation to cut a deal and get it filled - or lack thereof. Don't have insider knowledge of what the real cause is. However, you surely don't believe that if Puma left its corner spot at State/Randolph, they would have any difficulty landing a high-quality replacement in 6-9 months, max? All indications are that choice spots get spoken for very quickly on State, and solid tenant demand is pushing decent upward momentum in rents. Some structural issues yes - getting Block 37 filled and activiated with the right tenants, the dud of an 'anchor' in Sears, and the quality issues from around Adams, but these will be changing for the better....

denizen467

Apr 26, 2013, 6:26 AM

What about Gap's new huge store catercorner from B37 - their website seems to indicate it has opened finally but I haven't heard any details. I wonder if they built it with better street presence than the deadened look the Old Navy had. If they did, this could have a mild positive effect on B37 and that stretch of State in general.

SamInTheLoop

Apr 26, 2013, 12:46 PM

^ It actually quietly opened at least a few weeks ago. Was surprised when I noticed activity inside as there certainly wasn't any media or other buzz around the opening. Haven't paid attention to what if any exterior changes were made but will take a look....

tjp

Apr 26, 2013, 12:56 PM

^No big differences, except for windows on the second floor where there previously were none.

Anyway, I bet we'll see some tenant announcements in the next couple of months. CIM wouldn't take on a project like this if they weren't very confident they could at least bag an anchor tenant, like a movie theater for the 4th floor.

Chicago3rd

Apr 26, 2013, 1:18 PM

What if they closed the street stairs to the Red and Blue Line stations? People heading to the platforms would have to pass through Block 37. You'd need signage, of course.

http://www.bridgeandtunnelclub.com/bigmap/manhattan/midtown/42ndst/sixth-eighth/513timessqsubway.jpg
src (http://www.bridgeandtunnelclub.com/bigmap/manhattan/midtown/timessquare/subway/index.htm)
Let's close I90 between Golf and Roselle Rd. People heading in and out of the city would have to pass through Woodfield Mall via Golf Rd? Pedestrian design should incorporate a natural flow....not forced.

ardecila

May 2, 2013, 7:27 AM

Let's close I90 between Golf and Roselle Rd. People heading in and out of the city would have to pass through Woodfield Mall via Golf Rd? Pedestrian design should incorporate a natural flow....not forced.

The city (and the public) sank tons of money into this mall. If CTA can close a few entrances and reroute pedestrian traffic to help the mall thrive, why not? The public deserves a return on investment.

I was only thinking about the entrances on the west side of State/east side of Dearborn. I also suggested removing the doors between the subway mezzanine and the mall; it would be a huge waste of heating/cooling but you'd remove a significant mental barrier.

joeg1985

May 2, 2013, 2:42 PM

Personally I think that closing the street entrances to the CTA is a horrible idea. I would be really irritated if I was forced to walk through this mall rather than going right to the street. It would seem like another push of government corruption encouraging consumerism and patronage at a private business.

There is absolutely no public benefit to closing the street entrances.

ardecila

May 2, 2013, 10:31 PM

I wouldn't. Those stairs are downright scary/treacherous when there's rain or snowmelt. The canopies help but IIRC those are only installed over escalators.

ChiHi

May 3, 2013, 3:02 PM

Where is the last actually clean and well kept CTA station you've ever been to? With the amount of abuse that a CTA station takes in a day I have no idea why you would want to take that into a new mall that is as mentioned is supposed to give taxpayers a return on their investment. The biggest problem with this place isn't foot traffic. Thousands of people walk past this place everyday. It's that no one even knows that it's a mall or has shops in it due to incredibly needless sign and design restrictions. The entrances are about as discrete and hidden as can be and the name Block 37 gives itself no help in identifying what it is. Seems more like a poor marketing and exterior design is it's main killer. The inside is actually really nice and I shop in there quite often. From the outside it just looks like an office building with storefronts.

the urban politician

Jun 9, 2013, 5:33 PM

I was disappointed not to hear any news about a hotel, but good news nonetheless:

How Block 37 is returning from the dead (http://www.chicagobusiness.com/article/20130608/ISSUE01/306089988/how-block-37-is-returning-from-the-dead#ixzz2Vk1YDObA)

Baronvonellis

Jun 9, 2013, 5:39 PM

Maybe being across the street from Macys, which is a giant indoor mall itself doesn't help either. I agree that it should have much more advertising on the outside to be able to compete.

wierdaaron

Jun 9, 2013, 8:53 PM

The ICON theater anchoring Roosevelt Collection has been able to survive in a dead shopping center just fine, but I think if there was a food court there it would have crashed and burned. So I can understand a movie theater in Block 37, but a food court might be a little too optimistic.

I can't think of any multi-screen movie theaters the likes of AMC that have gone into buildings that weren't designed to house them. I wonder if they will have to compromise on the size of the screens due to the height of the fourth floor.

When they cut the hotel/highrise out of the plan for B37 did they design the foundation to give them the option to add one later? If this plan pays off, maybe they can still build upwards.

chicubs111

Jun 9, 2013, 8:56 PM

^ The hotel/highrise was never cut out of the plan...it is still in the future overall plan for the project

tjp

Jun 9, 2013, 9:36 PM

I think any highrise component would be residential, not a hotel.

And weirdaaron--the 4th floor, I believe, was originally built to accommodate theaters.

wierdaaron

Jun 9, 2013, 9:42 PM

And weirdaaron--the 4th floor, I believe, was originally built to accommodate theaters.

I was starting to think I remembered hearing that, but I've heard so many half-cocked ideas about this building I've started to willfully forget things. Blues museum?

the urban politician

Jun 10, 2013, 12:21 PM

I think any highrise component would be residential, not a hotel.

^ On what basis are you saying this? When CIM sought air rights/zoning rights several months ago (forgot what it was exactly) it was to build a future hotel. Have you heard something different?

SamInTheLoop

Jun 10, 2013, 12:59 PM

I was starting to think I remembered hearing that, but I've heard so many half-cocked ideas about this building I've started to willfully forget things. Blues museum?

The Blues museum was a goofy (not in general, but goofy to think such should be located at block 37) idea being 'pitched' by two real estate brokers who have nothing to do with block 37.......

SamInTheLoop

Jun 10, 2013, 1:07 PM

Although I don't know what CIM Group is cooking up for the high-rise, I do think that the residential + hotel route is still definitely the way to go.......the Loop proper needs more of both of these uses, from a business/market cycle perspective it seems to make a lot of sense, why not 1 of each? I was disappointed several years back when it looked like the high-rise was going to Golub (and their plan was for two residential towers - well, not sure if technically two....more like side by side connected towers, as there's only one elevator core for the entire high-rise component....then again, this really makes it one wide tower but I digress...)

At any rate, fantastic news on the soon-to-be tenants. The only one I'm not thrilled about is the gym......It's clearly not the most synergistic of tenant types, but oh well - at least we're finally getting the movie theater, the food court (i'm assuming the type of food court you see in Water Tower, not the ubiquitous suburban mall food court straight out of the 1980s), and the first destination or semi-destination restaurant - still need a couple more restaurants, and let's now get the shop space leased up!

SamInTheLoop

Jul 24, 2013, 3:37 PM

^ On what basis are you saying this? When CIM sought air rights/zoning rights several months ago (forgot what it was exactly) it was to build a future hotel. Have you heard something different?

I don't know the legal language of the pd rights as far as flexibility, but I do know it's currently zoned for 1 hotel tower and 1 residential tower (I believe it's technically one wide tower because it's one shared core along the randolph side). My guess is that there is flexibility at least as far as switching to 2 residential towers - again, just an educated guess (it could also be it's possible to switch to 2 hotels, but that's a much less certain guess on my part). My strong preference again would be for 1 residential tower and 1 hotel....

SamInTheLoop

Jul 24, 2013, 3:44 PM

In other (minor) block 37 news, the supports for the new signage (that CIM Group needed to obtain PD amendments for) scheme are currently being installed........let's hope they also have some new names to put on the signs!! Hopefully the late-stage negotiations for theaters, food, gym, restaurant leases revealed by Crain's 45 days ago are now signed!

Still not thrilled about a gym use for half of the 4th floor......(would much rather the theater occupied the entire floor with about 12-14 screens, rather than the 7-8 that I think we're getting).......I just never saw a gym as a synergistic anchor, which is what is most desirable from an urban activation perspective, but rather mostly just a rent-paying tenant (whose members will create a little cross traffic and awareness of the overall center's offerings)....

VivaLFuego

Jul 24, 2013, 9:30 PM

Although I don't know what CIM Group is cooking up for the high-rise, I do think that the residential + hotel route is still definitely the way to go.......the Loop proper needs more of both of these uses, from a business/market cycle perspective it seems to make a lot of sense, why not 1 of each? I was disappointed several years back when it looked like the high-rise was going to Golub (and their plan was for two residential towers - well, not sure if technically two....more like side by side connected towers, as there's only one elevator core for the entire high-rise component....then again, this really makes it one wide tower but I digress...)

I assume it's a moot point by now based on elevator capacity, but wouldn't office space be the highest, best, most obvious use for vertical floorspace on a site directly connected to the two busiest, highest frequency rail routes in the city? Transit as an economic model is all about the generation of trips going to the same place at the same time, and commercial density (ideally including both retail and employment to spread the demand by time of day and day of week) is far and away the most productive trip generator. A large hotel is certainly fine here if that's all the market could bear, but residential would be such a waste of this location that the city would be better off waiting until the market could do it right.

SamInTheLoop

Jul 26, 2013, 4:34 PM

^ First, I think it's definitely a moot point because of the current core - it's definitely smaller and for residential/hotel as opposed to what would be needed for high traffic office.

Second, I very much get you point on highest and best use from a transit/micro location standpoint. Definitely valid way to look at it. However, there is also how the market would view and value the highest and best use, simply from a level of interest from bidders/number of bidders (as far as what use they would slate for it), price offered per sq ft, etc in terms of this piece of land. It's clear to me that the market clearly thinks residential or residential and hotel is a better use for the high-rise component of the property than office (the demand for top tier office space - both existing building and proposed new construction - is much lower in the central loop/east loop (i suppose this would be around the eastern edge of the central loop) than in the W Loop and the special 'view from, view of' high profile, riverside locations. There is enough competition from landlords (Top-tier supply) for large A credit tenants in the N/S Wacker Corridor (including within 1-2 blocks of N/S Wacker), and those special view parcels - think 300 N LaSalle, River Point, 150 N Riverside, Wolf Point, etc), to more than satisfy all the demand that's out there - and more. But, there's loads of current potential from a demand perspective for development of residential and hotel in the central/eastern loop (of which block 37 is a very prime location) right now.....

I definitely don't think that markets are always right however........clearly those economists who worship efficient markets as a reality got their intellectual clocks cleaned throughout the last economic cycel or two, and those who have stuck with it despite all the daily contrary evidence will be judged as fools by history....

BVictor1

Jul 26, 2013, 5:16 PM

SamInTheLoop

Jul 26, 2013, 5:35 PM

^ Played a role in drawing traffic, but that theater filled such an enormous shortfall (actually didn't completely fill by any means - we still have a large gap between supply and demand downtown/near south side - and don't get me started on the south side at large) in screen supply that theater would have done well regardless.

To be quite honest, I'm looking forward to prices being jacked up considerably for parking at RC - the market augers for this, and the prices for movie tickets should be increased somewhat too. This was always slated to be more of a higher-end offer (in terms of complete product and service standards), and I've noticed some undesirable slippage over time (that I've spoken with the manager about, and will continue to btw)....

Rizzo

Jul 26, 2013, 6:28 PM

The ICON theatre survived because they made the parking free to draw patrons.

I think ICON survived because it's the best. Everybody I know of talks of a great experience at this theater. I go there whenever I can despite that I have two AMCs just a short walk from where I live and probably close to a a couple others on the train.

urbanpln

Jul 26, 2013, 6:34 PM

^ Played a role in drawing traffic, but that theater filled such an enormous shortfall (actually didn't completely fill by any means - we still have a large gap between supply and demand downtown/near south side - and don't get me started on the south side at large) in screen supply that theater would have done well regardless.

To be quite honest, I'm looking forward to prices being jacked up considerably for parking at RC - the market augers for this, and the prices for movie tickets should be increased somewhat too. I've noticed some undesirable slippage over time (that I've spoken with the manager about, and will continue to btw)....

I totally agree with your first point. The second point I also agree except that the undesirable element will continue to come regardless of price hikes on tickets. Higher parking fees will impact both desirable and undesirable elements.