MONDAY, NOVEMBER 24, 2008

David Barton Gym trying to get out of Block 37 lease

by Maureen Wilkey
David Barton Gym, an upscale workout facility that was slated to occupy more than 35,000 square feet on the fourth floor of Block 37's retail building, is "trying to extricate itself" from its lease, according to a statement from Joseph A. Freed & Associates LLC, the company that is developing and leasing the retail portion the project.

"David Barton Gym was the first tenant to sign a lease for space at Block 37 when The Mills still owned the project. We have been working with them since we took control and would like to retain them," reads the statement. "Recently, the company has been trying to extricate itself by making various claims, but we understand the economy is the real factor here."

The Mills Corp., a Chevy Chase, Maryland- based company, was previously the developer on Block 37. The firm sold the project to Joseph A. Freed and Associates and Golub and Co. in April 2007. David Barton Gym signed its lease in May 2005.

Since then David Barton Gym has also signed a lease to occupy the mixed-use Roosevelt Collection in Chicago's South Loop. A statement release by gym founder David Barton indicated that the gym is moving forward with its plans to open a new location at 150 West Roosevelt Road.

"Even though Block 37 has suffered a few delays, I do think that the project will be a success in the long term," Barton said in a statement. "However, I've instead decided to focus on the Roosevelt Collection project which will cover the region effectively and makes more sense for my growth strategy."

In the Freed statement, the company puts its focus on the current and future tenants for the Block 37 development.

"We remain enthusiastic about this project and our dynamic mix of retail tenants which will now be complimented by a Loew's Hotel. We expect to make more announcements detailing our continuing progress over the coming holiday season," the Freed statement continues.

The Illinois Real Estate Journal will continue to update this report as more information becomes available.



Jenn Danko contributed to this report.

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