Edgar C. Litchfield, a prominent Waterloo manufacturer, as a surprise for his wife, built the Mandalay in 1922. The mansion was constructed and furnished at a cost of about $400,000. It had 56 rooms, 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 1930s. 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 nightclub. 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.