However, there is nothing fundamentally 'wrong' with the retail component at block 37 from a market viability perspective.the concept, layout, etc works - provided its filled with wise choices as tenants. due in part to the complexities in hitting multiple property type market cycles within the same project. There was always far too much government involvement in general in block 37 (real estate development is clearly not a core competency of any government unit), and I agree with you that the edict for a large mixed-use project further set it up for 'challenges'.such projects have a fairly poor overall track record - at least financially speaking - across the U.S. The only reason construction went forward this time is because Mills and then Freed were persuaded that the mall would work economically. We finally got something built, but two major developers had to take a loss, and the mall is still mostly empty. The problem with Block 37 was the fact that the city kept demanding a complex mixed-use project, but in order to do that, the markets for each component needed to be strong at the same time. I don't think it will be a Block 37, though. The Merc hadn't owned it since it moved to Wacker in the 1970s. The Pritzker family Crown family owned it, in some capacity. Also, AMC is starting an upscale theater w/food segment - at least on the west coast.they should be going after them aggresisvely as well. When it first looked as though Muvico was falling apart, they should have went hard after Gold Class. And although a movie theater remains a fantastic use of part - or for that matter all (that's an option they should definitely be exploring) - of the 4th floor, it would be highly desirable for it to be upscale - discount or no-frills theater chains are a no-no for this site. A gym was always a bad idea because of the lack of synergies of the use - even back to the days of upscale David Barton being in the mix - it's just not a complimentary use and cross-traffic generator - just an income generator for that specific space. In short, if they don't get better anchor tenants than X-Sport or Studio Movie Grill then I feel confident in saying that the mall portion of Block 37 is mostly a lost cause.Īt first when seeing this article I was angry at the one bank that is holding up the lease-out of the top floor (is there a conceivable negative development in this saga that would actually surprise anyone at this point?), But on second glance, I definitely agree with Spyguy here - these seem like fairly undesirable options, and the bank's stonewalling could actually be a blessing in disguise. Take all of the space facing State Street and turn it into either an upscale gym or entertainment space (bowling, live theater, etc.) Fourth floor should be filled with the movie theater and other entertainment options. IMO the best option is to forget about leasing the 3rd floor to retailers because all you're going to get are useless gift shops or stores that last 6 months before closing. They really need to look for something better like Gold Class Cinemas or Muvico. ![]() This thing is going to fail miserably in Chicago - website is junk, theaters looks dated, the seats are basically office chairs, no stadium seating, small screens. Studio Movie Grill - cheap chain from suburban Texas.Charming Charlie - cheap jewelry/accessories store like Claire's.I still maintain that a gym won't add any vitality to the project or street, but if you're going to have one at least get something on the level of Equinox or David Barton. ![]()
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