The Mandalay was built in 1922 by Edgar C. Litchfield, a prominent Waterloo manufacturer, as a surprise for his wife. The mansion was constructed and furnished at a cost of about $400,000. It had 56 rooms and featured a shooting gallery, gymnasium, single-lane bowling alley, marble and bronze fountain, billiards room, and pipe organ.

Among the house's many innovations were an automatic dishwasher, a clothes washer and dryer, a vacuum cleaning system, concealed radiators, and an intercommunication system.

The Litchfields lost their home during the Depression of the 1920's. It was purchased in 1932 by Arthur Ferguson for $1,438.40 in back taxes and $9,000 in payment to previous creditors. The Fergusons converted the mansion into a restaurant and night club. It was later made into an inn and, finally, an apartment house. It is known today as Mandalay Apartments.

A 1977 fire severely damaged the building, which is now undergoing repair. It is a private residence.