Brookfield to Build Apartments First in Northbrook Mall Redo

Brookfield Properties won approval from the Northbrook Village Board to begin residential construction at Northbrook Court before tackling the struggling mall’s retail overhaul.

Village trustees permitted mixed-use redevelopment and amended an economic incentive agreement, the Chicago Tribune reported.

The amount of the economic incentive Brookfield is set to receive hasn’t been disclosed; it was reported in 2018 that the developers sought $27 million in incentives, including $21.5 million in tax increment financing and $5.5 million in sales tax rebates, for a $250 million project. The most recent documents indicate the village has agreed to provide financing through TIF and business district revenues.

High interest rates and economic factors have made operating regional malls like Northbrook Court challenging. High demand for suburban multifamily, on the other hand, has led to rent growth and a competitive investment market, and construction lending for apartments is less difficult.

Brookfield’s redevelopment plan includes a mix of apartments, row houses and townhomes, designed to meet shifting market demands.The earliest construction could start would be summer 2026.

Northbrook Court is part of Brookfield’s broader strategy to transform underperforming retail spaces into mixed-use developments. The Northbrook project aims to incorporate residential units, commercial spaces and community amenities, reflecting a shift in focus from traditional retail to more integrated community environments. Brookfield’s similar initiatives include the Stonestown Galleria in San Francisco, where it plans to add thousands of homes and commercial spaces.

Northbrook first approved the redevelopment agreement with Brookfield affiliates in 2023, establishing a TIF district and a business district to spur a revamp of the 100-acre property at 1515 Lake Cook Road. However, financial incentives tied to the deal will only be activated once retail development begins, said Amy McEwan, Northbrook’s director of development and planning services.

“We safeguarded the agreement, ensuring developers must lease at least 50 percent of retail space before accessing incentives,” said village president Kathryn Ciesla.

—Rachel Stone