Nordstrom Rack to Open First Wisconsin Location at HSA’s The Mayfair Collection

Seattle-based Nordstrom, Inc., (NYSE: JWN) announced today plans to open the first Nordstrom Rack in the State of Wisconsin. The approximately 36,000-square-foot store is scheduled to open in spring 2014 at The Mayfair Collection in Wauwatosa, just outside of Milwaukee.

Nordstrom Rack is the off-price retail division of Nordstrom, Inc., carrying on-trend merchandise from Nordstrom stores and at 50 to 60 percent off original Nordstrom prices. Nordstrom Rack also offers a wide selection of apparel, accessories and shoes from many of the brands carried in Nordstrom stores. These items are purchased specially for Nordstrom Rack, with most at savings of 30 to 70 percent off.

The Mayfair Collection, a 250,000-square-foot planned adaptive reuse development of a former industrial complex and distribution center fronting the heavily-trafficked Highway 45, will be located a half mile from Mayfair Mall, the dominant regional mall in greater Milwaukee. The new Nordstrom Rack will join co-tenants Dick’s Sporting Goods and ULTA, which also recently signed leases for the project. The Mayfair Collection development is owned and managed by HSA Commercial Real Estate.

“We’re thrilled to be bringing Nordstrom Rack to Milwaukee and hope this new store will help us more conveniently serve our customers who have been making the drive to Chicago to visit us,” said Geevy Thomas, president of Nordstrom Rack. “The Mayfair Collection is a terrific location and we’re looking forward to getting our doors open so that we can start serving the community.”

“Nordstrom Rack, Dick’s Sporting Goods, and ULTA each represent the leading retailers in their respective categories, and we are going to continue to build on that best-in-class tenant mix with other lease commitments for the project to be announced soon,” said Timothy Blum, executive vice president with HSA Commercial Real Estate.

HSA’s Dave Keady Talks Tosa

Each month, HSA Commercial profiles a broker at our firm as part of our HSA News & Views blog. In this edition, we talk with Dave Keady, senior vice president of the Retail Services Division. Dave is responsible for the product leasing with HSA’s retail developments, most notably for The Mayfair Collection in Wauwatosa, Wisconsin, a 250,000-square-foot adaptive reuse in the so-called “Burleigh Triangle” (Click here to learn more about the project).

HSA: How is the leasing progressing for the project in Wauwatosa?
Keady: Everything is moving relatively smoothly. The leasing really gained significant traction last spring after we obtained the preliminary approval for our plan from the City of Wauwatosa. The retailers saw the positive press that the project was generating, and we were able to start building a critical mass of anchor tenants to propel the project forward. There’s still a lot of work to be done, but we are feeling confident that we can deliver an exciting tenant mix.

HSA: How have the economic conditions affected your efforts?
Keady: Since I started working with Tim Blum on the project a few years ago, we have always maintained that our target audience is a mix of unique, best-in-class retailers seeking regional locations in the Mayfair Mall trade area. For the most part, we are meeting our goals and realizing that vision.

The economy simply slowed us down. For the past couple years, we have had to compete with an inventory of existing vacancies offered for below market rents. By-and-large, those backfill opportunities are gone, and the retailers, especially the publicly-traded companies, still need to grow to demonstrate value to their stockholders. This puts landlords like us, with a well-defined value proposition, in a position to strike a much more economical and mutually-beneficially deal.

HSA: Generally speaking, what other projects is HSA’s retail development team working on?
Keady: Our retail team is always pursuing infill, value-added development opportunities. In the past, we’ve been primarily focused on large-scale redevelopment projects like in Wauwatosa, but we are beginning to find opportunistic, single-tenant developments where we can still generate substantial returns. However, we’ve always operated with a more conservative investment strategy, and now that is more important than ever.

HSA: In a lot of ways, you established your career as a tenant broker for Potbelly Sandwich Works and others. Do you think that this helps you with product leasing?
Keady: Every tenant is different, and their needs and personalities vary. However, I would say that my background as a tenant broker helps me to anticipate some of the questions and concerns that arise in the negotiation process. That helps in finding that critical path to expedite the deal.

Dave Keady has transacted leases with national retailers such as Nordstrom, Kmart, TJX Companies, Dick’s Sporting Goods, Filene’s, Office Max and Ulta. Prior to joining HSA, Mr. Keady was a Senior Leasing Representative with Klaff Realty.

Milwaukee Business Journal: People In The News – Dion Watton

Dion Watton, Asset Manager with HSA Commercial, was profiled in a recent edition of “People in the News”, part of the Commercial Real Estate edition of the Milwaukee Business Journal. The Journal elected to feature Dion after he was named the 2011-2012 Milwaukee Chapter No. 13 President by The Institute of Real Estate Management.

Mr. Watton is responsible for managing HSA Commercial’s 2,500,000-square-foot Wisconsin commercial real estate portfolio, which includes the 655,217-square-foot mixed-use Brown Deer Business Park, the 1,021,575-square-foot industrial complex at 11100-11500 W. Burleigh in Wauwatosa, and the 450,000-square-foot Park 94 business park development in Mount Pleasant.

The full profile article is available on the Milwaukee Business Journal’s website.