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City of Chicago to buy Block 37 property

The parcel of downtown property formerly known as Block 37 will be purchased by the City of Chicago for $32.5 million. The city has reached a purchase agreement with the current owner, FJV Venture, and expects to close the deal in the early fall.

Plans call for the site, which has been renamed 108 N. State St., to be developed into a glitzy retail and residential destination. London department store Harrods has been in negotiations with the city to become an anchor tenant at the development.

FJV Venture holds a $19.9 million mortgage on the property, and the city will pay $12.6 million at closing. Arlington, Va.-based Mills Corp. has been selected as the master developer of the site.

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