Demolition Set to Begin; Groundbreaking Scheduled for Spring 2015
Milwaukee – February 19, 2015 – Contracts are finalized and on-site work will soon begin on The Corners of Brookfield, a new 750,000-square-foot premier lifestyle center that will be located on approximately 19 acres of land bounded by West Bluemound Road, North Barker Road and I-94. The final development agreement has been signed with the Town of Brookfield, demolition of the vacant Menards building on The Corners project site will begin in the coming weeks and a formal groundbreaking is planned for Spring 2015, with project completion anticipated in Fall 2016.
In addition, The Marcus Corporation (NYSE: MCS), which initiated the development of The Corners, also announced today that it has entered into a joint venture agreement with IM Properties and Bradford Real Estate, two proven retail development and investment experts, to serve as the new project management team leading The Corners to completion. IM Properties and Bradford will serve as the managing member in the joint venture and The Marcus Corporation will remain as a partner in the joint venture.
"As we have previously disclosed, it was always our intent to bring in a majority equity partner for this project. We knew that transitioning The Corners to an experienced equity partner and a Midwest real estate developer with deep retail expertise would speed the project timeline and ensure the best possible finished product,” said Gregory S. Marcus, president and chief executive officer, The Marcus Corporation. “We are extremely proud of the efforts of our team and the investments we have made to make our vision for The Corners a reality. I’m confident that The Corners is on track to becoming a true destination in Southeastern Wisconsin that will spark new economic development opportunities in Brookfield and the surrounding areas. We are pleased to remain an investor in the joint venture."
Echoing that sentiment, Steve Pagnotta, president of Bradford Real Estate, said: "For 30 years, the Bradford team has built an enviable reputation as a leader in retail development in the Midwest. We have persevered through multiple economic cycles, remaining at the forefront of retail trends and leading to completion multi-faceted, groundbreaking developments. We have worked closely with IM Properties on multiple properties in the Midwest, and our repeat ability to deliver a superior final product is a credit to our development expertise and IM Properties’ investment capacity and capability, as well as our joint ability to form strong partnerships with tenants, partners, lenders and other interested parties that are vital to the success of a project such as The Corners. We look forward to adding our combined expertise to the long-term success of The Corners, which we believe will offer an unrivaled shopping, dining and living experience for visitors and tenants alike."
Design architect DDG is finalizing the plans for The Corners, with a general contractor expected to be named later this spring. Newly-merged CBRE/UCR has been retained to manage retail leasing for the upscale development. Initial financing for the development has been secured through a previously announced agreement with the Town of Brookfield, with the remainder coming from a mix of balance sheet equity from IM Properties, land from The Marcus Corporation and future construction loan commitments that are in the process of being negotiated.
"Relationships are important to us, as is local knowledge and expertise. During the past six years, IM Properties and Bradford Real Estate have developed an excellent working relationship and together have executed nine successful shopping center developments,” said Robert Gould, vice president at IM Properties. “Investing across an ocean, some 4,000 miles from home, requires a great deal of trust and confidence, both in your business relationships and in the quality of the end product. The Corners is a trophy investment opportunity and we are confident that it will be a flagship development with a great future."
The $200 million development will serve as a vibrant destination for luxury shopping, dining, entertainment and living experiences. Plans call for 400,000 square feet of retail and restaurant space and 235 luxury apartments that will be managed by Milwaukee-based Mandel Group. Tenants will include a mix of men’s, women’s, and children’s fashion and accessories, home goods, grocery and specialty retailers.
"We are excited to be opening our first Wisconsin store at such a top-tier, upscale location like The Corners,” said Jim von Maur, president of Von Maur Department Stores, whose 140,000-square-foot store will anchor the development. “We know shoppers will be thrilled with the mix of our wide selection of unique brand-name merchandise and unparalleled customer service, and we look forward to introducing Von Maur to customers throughout the greater Milwaukee area."
"We continue to view The Corners as a unique residential opportunity for the greater Brookfield area. The shops, restaurants and services of The Corners will provide our future residents with incredible convenience and a broad range of choices walkable from their home," said Barry Mandel, founder and president of Mandel Group, Inc. "The freeway accessibility is simply the best in the area, and connects the property to nearly every major employment concentration in the region. The residences are all located on upper floors, and together with the elevation of the site, the views will be really interesting. Overall, the setting will have the buzz and energy of an urban setting, while providing terrific connectivity to the greater Waukesha and Milwaukee metro area."
In addition to premier shopping, dining and living spaces, The Corners will be organized around a central green space, making it an inviting hub of activity year-round. To keep visitors comfortable and dry during all seasons, the development will also feature free underground parking.
The Corners is expected to create significant economic benefits for Southeastern Wisconsin, generating more than 1,100 permanent new retail jobs and more than 325 temporary construction jobs. The Town of Brookfield conducted an independent assessment and estimates the development will generate annual sales tax revenue of over $8 million based on $157 million in total annual retail and restaurant sales. As a result of the creation of a new Tax Incremental Financing District, the Town of Brookfield projects that additional land and improvements value of approximately $187 million will be created as a result of new development, redevelopment and appreciation in the value of existing properties.
"The investment by local, regional and international players in The Corners project really speaks to the attractive location, growth opportunities and strong pace of economic development in the Town of Brookfield. We are very pleased to have reached an agreement to move this project forward and to work with this team to develop a showcase property that will be known statewide," said Keith Henderson, chairman of the Town of Brookfield.
Stay updated on progress at The Corners by visiting the Facebook page: www.facebook.com/CornersBrookfield.
About Bradford Real Estate:
Bradford Real Estate is based in Chicago and has 30 years of experience in retail development, mainly in the Midwest. Bradford devotes all of its capabilities, expertise and investment into each aspect of a development project. As such, Bradford owned and joint development projects benefit from the architectural, construction, leasing, mapping, management, legal, and financial resources available through the in-house capabilities of the Bradford team. Tenants include established retailers such as Wal-Mart, Sam’s Club, Home Depot, Lowe’s, Menard’s, Meijer, Mariano’s, Kohl’s, Jewel, PetsMart, Walgreens, CVS, Vitamin Shoppe, Noodles & Company, Starbucks, Chipotle, and McDonald’s on a repeat basis. For more information, visit the company’s website at http://www.bradfordchicago.com/.
About IM Properties:
IM Properties has a 30-year history in all major real estate sectors including retail, industrial and logistics, office and residential, and owns and manages an investment and development portfolio valued in excess of $1.5 billion across the United Kingdom, Germany and the United States. Investing in the United States has been a continuing focus of the growth of the business since 2007. The company is attracted by the scale and trophy developments that can be achieved in major marketplaces in the US. Investing in the future through new vibrant developments is at the heart of the company’s strategy. IM Properties Plc, the UK parent is a subsidiary of IM Group which in addition to real estate has extensive interests in the automotive distribution business throughout northern Europe primarily through its Subaru, Isuzu and other franchises. IM is headquartered in Coleshill near Birmingham in the UK with its U.S. operations based in Florida. For more information, visit the company’s website at http://www.improperties.co.uk/.
About The Marcus Corporation:
Headquartered in Milwaukee, Wisconsin, The Marcus Corporation is a leader in the lodging and entertainment industries, with significant company-owned real estate assets. The Marcus Corporation’s theatre division, Marcus Theatres®, currently owns or manages 685 screens at 55 locations in Wisconsin, Illinois, Iowa, Minnesota, Nebraska, North Dakota and Ohio. The company’s lodging division, Marcus® Hotels & Resorts, owns and/or manages 20 hotels, resorts and other properties in 11 states. For more information, visit the company’s website at www.marcuscorp.com.