Bayshore's operator and developer Cypress Equitieshas secured $21.9 million in funding for its $73 million, 311-unit residential development under construction at the north end of the Glendale property.
The investment comes in the form of a joint-venture equity partnership between Dallas-based Cypress and North American Development Group, according to a news release.
NADG is headquartered in Canada, with offices in Palm Beach, Florida and an existing portfolio of more than 14,000 units and 25 million square feet of commercial space. Chicago-based commercial real estate firm Aries Capital arranged the deal after Cypress approached the company seeking equity for the project.
The four-building mid-rise apartment complex, known as The Bayshore Residences, will feature studio to three-bedroom units, a pool, and shared courtyard spaces. The project was proposed in July 2020. In October, the development site was transferred from one Cypress subsidiary, Bayshore Shopping Center Property Owner LLC, to another, Cypress Bayshore Residential LP, for nearly $7 million, according to state records.
Calling the partnership a "natural fit," Brandon Perdeck, director of capital markets at Aries, cited a handful of selling points for the deal: lack of new apartments in the immediate area, no planned developments or projects currently under construction, strong demographic trends, and anticipated growth for the Milwaukee area.
"From introduction to closing, Aries Capital made the entire process seamless due to their professionalism, communication, and execution," said John Ausburn, principal with Cypress Equities. "Cypress is excited for the opportunity to continue its partnership with NADG beyond Bayshore Residences."
Acquiring the property in 2019, Cypress has overseen Bayshore's ongoing redevelopment, which aims to downsize the mall’s retail space and demolish or convert existing buildings for other uses. In 2019, Cypress estimated the total cost of the project was more than $55 million.
It has brought a wave of newly opened or announced tenants, such as Nike, Target and Crumbl Cookies. Other recent milestones include renovations to the rotunda area, a new Total Wine & More store and a renovated town square, called The Yard. A Culver’s restaurant is planned on the north side of the property.
"The stability and reputation of the developer, combined with the significant potential for return on investment, made this a sound opportunity for our equity investor," said Perdeck. "This development offers the rare opportunity to offer new residents the suburban lifestyle of Glendale and Whitefish Bay, with the urban hustle of Milwaukee."