CHICAGO-While some believe the legal battles regarding Block 37 are starting to wind down, more tenants are moving into the  280,000-square-foot retail building at State and Washington streets. Summit Design + Build LL has completed two build-outs, and started three more, for tenants at the complex.

The Loop property, which also includes a new office building and a new Chicago Transit Authority pedestrian walkway and train connection, has had more than a few false starts and failed development plans. Now, Joseph Freed and Associates is fighting in court to retain its hold on the retail building, after Bank of America foreclosed after construction loan payments weren’t made. The court agreed to CB Richard Ellis as a receiver, and the broker has been handling leasing while the court battle continues.

New tenants continue to move into the retail building. Summit Design recently completed build-outs for cosmetics company Sabon and a new fast-food franchise Beard Papa’s. In addition to those projects, Summit was retained by CBRE to perform shell and core work for three new tenants in the Pedway: Simply Thalia, a pan-asian restaurant; iCandylicious, a confectioner; and Which Wich, a sandwich shop. The stores join a new Disney Store, Anthropologie,  Au Bon Pain and Sephora.

Adam Miller, president of Summit Design, says though the tenant lineup at the site is building, the stores are suffering because of the legal action. Three anchor tenants, including a movie theater, popular gym and food court, have all be held up or canceled because of the foreclosure activity. “Unfortunately this is taking a lot of time, and right now it’s a very slow mall for the current tenants,” Miller tells GlobeSt.com. “It will eventually be a successful project, but it will be another year or more before this is resolved.”

Miller says with the economy forcing development to a standstill, his business has doubled in sales the past year and tripled his volume. “We’re staying very busy,” he says. “A lot of businesses are taking advantage of the opportunity in the market to buy existing and/or distressed buildings for good prices, and we’re doing construction to finish projects or renovate. Tenants are also taking advantage of rates and making us busy, either downsizing or growing to different spaces.”