- Brookfield won approval to begin residential construction at Northbrook Court Mall in Illinois before launching retail renovations.
- The project includes apartments, row houses, and townhomes, aiming to meet high demand for suburban multifamily housing.
- Financial incentives tied to the redevelopment—such as TIF and sales tax rebates—will only activate once retail leasing hits certain benchmarks.
Residential First, Retail Later
As reported by The Real Deal, Brookfield is rethinking its approach at the aging Northbrook Court Mall, opting to begin with housing development before revamping its underperforming retail component.
Northbrook trustees greenlit the pivot in strategy and amended the economic incentive agreement initially set in 2023.
The redevelopment, located at 1515 Lake Cook Road, will bring a mix of apartments, row houses, and townhomes to the 100-acre site—aligning with broader trends favoring residential-led mixed-use communities.
Chasing Housing Demand
With suburban multifamily demand driving strong rent growth and relative ease in apartment financing, Brookfield is playing to market strengths.
High interest rates and challenging retail conditions have made it difficult to justify leading with retail in this environment.
“The agreement protects taxpayers by requiring 50% of retail to be leased before incentives are accessed,” said Northbrook Village President Kathryn Ciesla.
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Incentives in the Mix
While current incentive details remain undisclosed, Brookfield previously sought $27M in subsidies—including $21.5M in TIF and $5.5M in sales tax rebates—for a $250M project.
The village has now agreed to use TIF and business district revenue to support the redevelopment once retail construction is underway.
A Broader Playbook
Northbrook Court is part of Brookfield’s larger nationwide strategy to reposition struggling malls into vibrant, mixed-use environments.
Similar efforts include San Francisco’s Stonestown Galleria, where Brookfield plans to add thousands of housing units alongside retail and public space.
Why It Matters
The Northbrook project exemplifies how institutional developers are adapting to retail’s transformation by putting rooftops over retail—and using housing as a catalyst for revitalization.
