5 Years Later, The Mayfair Collection's Retail-First Strategy Is Paying Off

Developing a true mixed-use community sometimes takes patience. That was the strategy Chicago-based HSA Commercial Real Estate took after it was brought on several years ago by the city of Wauwatosa, Wisconsin, to breathe new life into a 69-acre assortment of mostly vacant warehouses.

The city always envisioned the site as a residential community, but HSA officials believed that part had to wait.

The Mayfair Collection
Courtesy of HSA Commercial Real Estate
The Mayfair Collection In Wauwatosa, Wis.

“We agreed with the principles in the city’s master plan, but always said we first need a critical mass of new retail, including grocery stores and restaurants, that would shift the center of gravity away from the traditional retail corridors in the area,” HSA Executive Vice President Tim Blum said.

The site, now called The Mayfair Collection, teems with new restaurants and stores like Nordstrom Rack, Whole Foods and HomeGoods, which occupy renovated warehouses, and a 146-room Hilton Homewood Suites hotel.

That allowed potential residents and office tenants to see this site along U.S. Highway 41/45 and Burleigh Street as a thriving community where they could live and work. The public spaces and events like jazz music on Friday nights also helped change perceptions of the once-industrial area.

“People now drive into this area and say, ‘this is a neighborhood,’” Blum said.

The city’s initial reluctance to focus on retail was understandable. In Wisconsin, sales taxes go to the state, but municipalities get stuck with the costs associated with retail like trash pickup or traffic congestion.

It took a leap of faith by Wauwatosa officials to go with HSA, which said it could achieve the city’s overall goals, as long as it was given time. That decision appears to have paid off.

Mayfair’s first luxury residential building, the 269-unit Synergy at The Mayfair Collection, opened in late 2018, and nearly five years after opening the first renovated warehouses, HSA and the city just signed a deal that will create up to 750 additional residences and 360K SF of corporate office space.

Mayfair Collection Office Rendering
Courtesy of HSA Commercial Real Estate
The next phase of The Mayfair Collection

“This new agreement is a watershed moment, and it fulfills the promises we made,” Blum said.

Specifically, the agreement calls for extending roads and needed infrastructure deeper into the site, as well as the demolition and environmental remediation of the remaining warehouses. HSA plans to begin demolition and site work this summer, with the pad-ready development sites available as soon as spring 2020.

“We’ve got corporate office folks who now want to come here, but would not have gotten off at this interchange 10 years ago,” Blum said.

Although mixed-use communities have become trendy in many urban areas, too many developers in some parts of the country still take shortcuts, he said.

“I’m not naming names, but I’ve seen developers build one strip of retail and then one residential building, but who wants to live in the middle of a mall parking lot?”

Continue reading this story with a free account

Log in or register
Sign up for more articles like this
Subscribe to Bisnow's Chicago Newsletters
Related Stories

108-Acre Hawthorne Race Course Buyer Could Put Data Center On Site

Oak Brook Investor Scoops Up Suburban Multifamily Community: The Chicago Deal Sheet

Food And Beverage Increasingly Becoming Anchor In Mixed-Use Projects

EXCLUSIVE: Opal Holdings' Former 700K SF Suburban Chicago Office Campus Hits The Market

Big-Box Deals Push Chicago Industrial Leasing Into National Top 3

Bally's Debt Obligations Raise Doubts Over Casino Operator's Future

With Illinois' Senior Population Set To Grow By 40%, Developers Are Facing A Financing Puzzle

REPORT: JLL In Talks To Relocate Global Headquarters

Illinois' Record Storm Season May Be Changing The Risk Equation For CRE

Beacon Partners Sells Charlotte Mixed-Use Development For $92M

Venture One Real Estate Lands 132K SF Portfolio: The Chicago Deal Sheet

Related Midwest Is Betting Big On Chicago While Others Hold Back