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(Crain’s) — Developer Joseph Freed & Associates LLC has leases with 13 new retailers for Block 37, including cosmetics giant Sephora, even as Freed is embroiled in a fight with its lender to keep control of the new shopping center.
The new leases total 20,700 square feet, which is more than 7% of the space in the 280,000-square-foot shopping center that’s supposed to open this month on State Street between Randolph and Washington streets.
Block 37 last month was hit with a foreclosure lawsuit by its main lender, Bank of America Corp. Charlotte, N.C.-based B of A is now seeking in court to oust Freed and have a receiver take over the project. Arguments in the matter, and Freed’s attempt to have the foreclosure suit dismissed, are to be heard later this month by a Cook County Circuit Court judge.
Larry Freed, president of Chicago-based Freed, says in a press release that the developer is “on track to open this new shopping and entertainment destination for consumers before Thanksgiving and to complete Block 37 by the end of 2010, assuming the bank cooperates on the necessary funding.”
The bank has said in court filings it has the funding, more than $80 million, required to complete the project. Attorneys for B of A said Monday in court that the bank will continue to fund base-building work, but won’t fund certain construction costs unless a receiver is appointed.
A B of A spokeswoman in an e-mail says the bank "carefully reviews each lease that is presented pursuant to our construction loan agreement," and re-iterated its contention that having a receiver complete the project is the "best outcome for all involved, the banks, the tenants and the community."
In addition to Sephora, which is to occupy 6,000 square feet on the first level with a State Street entrance, the new tenants Freed announced Tuesday include a handful of local designers and entrepreneurs.
Chicago fashion designer Michelle Tan is leasing a 650-square-foot shop on the mall’s second level while fellow Chicago women’s boutique Claudia Kleiner Malabar Collection will have a 750-square-foot store with clothing and jewelry designed by Claudia Kleiner.
Other locals include Bleeding Heart Bakery (450 square feet) and Comic Vault (300 square feet), which will both be on the third level, while Alternatives Shoes has leased 1,500 square feet on the first level.
Freed notes in its release, however, that the Claudia Kleiner Malabar Collection and Alternatives Shoes leases are pending B of A’s approval.
Sephora is taking space that Apple Inc. had once considered for its store, sources had previously told Crain’s.
The other tenants are:
• Simply Thalia, which features sushi and French-Asian sandwiches, has leased 1,300 square feet in the pedway.
• GNC Live Well, which sells vitamins and nutritional supplements, has leased 1,300 square feet in the pedway.
• Louisiana-based jewelry store chain Local Charm has leased 1,000 square feet on the first floor.
• Chicago-themed gift store Spirit of the City has leased 3,200 square feet on the third level.
• Accent Chicago has leased 1,900 square feet on the third level to sell licensed sports apparel.
• iCandylicious has leased 1,600 square feet in the pedway for a candy store.
• L’Occitane en Provence has leased 750 square feet for a store to sell bath, body and skin-care products.
Note: This story has been corrected to accurately name the two tenants whose leases await Bank of America approval.
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