REAL ESTATE NEWS

A venture led by Redwood West and Panattoni has acquired Victoria Gardens, a 1.2 million-square-foot lifestyle center in the Inland Empire, from Brookfield Properties for $530 million.

The venture partnered with Prime Finance and Prism Places on the major transaction in Southern California's Inland Empire region. An Ares Real Estate fund provided debt financing for the deal.

Located in Rancho Cucamonga, California, the site welcomes 14.7 million visitors annually, ranking it as the fifth-busiest open-air lifestyle center in the U.S.

At 98 percent leased, Victoria Gardens is home to 160 specialty retailers and restaurants, including Apple, Lululemon, Chanel, Sephora, Nike, Sweetgreen, Macy's and Fleming's Steakhouse.

The new ownership plans to invest more than $50 million in the property.

"We are excited about the once-in-a-generation opportunity to acquire the preeminent outdoor retail center of the Inland Empire," Colby Cyburt, managing partner of Redwood West, told GlobeSt.com.

"This iconic property stands out as a high-performing asset with exceptional foot traffic, a diverse mix of premium tenants, and strong community ties in a rapidly growing market. We plan to enhance the property through significant capital improvements to the main town square, common areas, landscaping, and signage, ensuring it remains a vibrant destination for shoppers and locals alike."

Victoria Gardens generates more than $1,100 per square foot in retail sales and serves as a central gathering place for the community. The center features the Victoria Gardens Cultural Center that encompasses a public library where the Randall Lewis Second Story and BeyondŽ immersive discovery space is located, as well as a performance venue.

Its location is within a 25-minute drive of 2.2 million residents. Rancho Cucamonga has an average household income of $138,000, ranking 22 percent above the national average. Additionally, household income growth in the area is projected to be nine percent over the next five years.

Still, residents have a relatively moderate cost of living compared to nearby coastal cities, resulting in disposable incomes 10% higher than the Los Angeles County average, according to market researchers.

Source: GlobeSt/ALM