Menomonee Falls-based Continental Properties Company Inc. is working on plans to expand the Grafton Commons development at I-43 and Highway 60 in Grafton, according to commercial real estate sources.
Continental developed the 389,000-square-foot Grafton Commons shopping center in 2007. The shopping center’s tenants include Costco, Kohl’s, Dick’s Sporting Goods and Best Buy. Continental sold the Costco building to Costco for $4.2 million and the remaining 237,565 square feet of the shopping center was purchased in late 2009 by Oak Brook, Ill.-based The Inland Real Estate Group of Companies Inc. for $37 million.
Now Continental is working on plans for more retail development to the north of the Costco store, according to sources.
Mid-America Real Estate-Wisconsin is marketing a 17-acre development site (with 10 “usable acres”) north of Costco, and a 1.6-acre site along Highway 60 for Continental Properties. The sites are being marketed as land for sale, ground lease or build to suit.
Mid-America Real Estate principal Dan Rosenfeld declined to comment and a Continental Properties representative did not return a phone call seeking comment.
But one commercial real estate source said Continental is trying to assemble a 30 acre site north of Costco where it would build about 200,000 square feet of retail development with two 50,000 to 60,000-square-foot big box stores, some medium box stores between 25,000 and 40,000 square feet, and some smaller 1,200 to 10,000 square foot tenants.
Another source said Continential is working on a deal for a 55,000-square-foot Hobby Lobby store north of Costco. Mid-America recently brokered a 55,000-square-foot lease for Hobby Lobby at the Shoppes at Fox River in Waukesha.
Continential has yet to provide any information to Grafton officials about plans to expand Grafton Commons, said village administrator Darrell Hofland
“No proposal has been submitted,” he said.