Victoria Gardens, an expansive outdoor shopping center in Rancho Cucamonga, has sold for $530 million as open-air malls continue to outdraw conventional indoor centers.
The center, built in 2004 on former agricultural land at a cost of $285 million, is one of the largest regional malls in Southern California, with more than 30 buildings on 12 blocks, interspersed with parks, gardens and fountains. It also has a public library and cultural center.
The new ownership is a venture led by Newport Beach real estate company Redwood West and Irvine developer Panattoni, in partnership with Prime Finance and Prism Places.
Victoria Gardens gets nearly 15 million visitors annually and generates more than $1,100 per square foot in retail sales, placing it among top-grossing open-air shopping centers in the nation, Redwood West said.
It has about 160 retailers including Apple, Lululemon, Chanel, Gorjana, Sephora, Nike, Zara, AMC Theatres, Shake Shack and Macy’s.
“We see tremendous opportunity with Victoria Gardens,” John Pomer, a managing partner at Redwood West, said in a statement. “It is a one-of-a-kind, highly productive asset with deep roots in the region. ”
The new owners said they will spend another $50 million on improvements, such as landscaping, signage and common area upgrades.
When it was built, the mall was part of a trend among commercial builders to create mini downtowns for cities that lacked them.
Town Center Drive in Santa Clarita and Birch Street Promenade in Brea are smaller examples of the town center concept that dates to the early 1990s, after the success of Reston Town Center in Virginia.
The seller of the mall was Brookfield Properties, a Canadian real estate giant that has been selling commercial properties in Southern California in recent years, including office buildings in downtown Los Angeles and the Shoppes at Carlsbad mall in San Diego County.
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