$530M Mall Sale Is Southern California’s Biggest Retail Deal in Years

Demand for large, open-air and lifestyle/destination retail has spiked in Southern California, and a joint venture just brought it to the next level after putting down more than half a billion dollars on one of the nation’s top-performing properties.

Newport Beach-based Redwood West and Irvine-based Panattoni, in partnership with Prime Finance and Prism Places, paid approximately $530 million for Victoria Gardens, a 1.2 million-square-foot shopping center in Rancho Cucamonga, 43 miles east of Downtown Los Angeles. The deal, brokered by Eastdil Secured, is likely among the highest prices ever paid for one retail property in Southern California, trumped only by investor Wen Shang Chang’s $538 million purchase of The Shops at Santa Anita in 2022.

“It is a one-of-a-kind, highly productive asset with deep roots in the region,” John Pomer, Redwood West co-founder and managing partner, said in a statement. “We plan to build upon that foundation by strengthening the experience for both the retailers and the community it serves.”

An Ares Real Estate fund provided acquisition financing tied to the deal, according to a JV spokesperson. 

In mid-2024, sellers Brookfield Properties and Australia-based Queensland Investment Corporation were on the brink of securing a $265 million refinancing deal tied to the property, though it wasn’t immediately clear if the deal actually closed. Potential lenders J.P. Morgan and Barclays had reportedly intended to maneuver the five-year, floating-rate loan into a commercial mortgage-backed securities package.

Victoria Gardens, at 12505 North Mainstreet, is 98 percent leased to some 160 retailers and restaurants. With 14.7 million annual visitors, the mall is ranked as the fifth-busiest open-air shopping center in the nation, according to Placer.ai data. New ownership plans to invest more than $50 million into the property, with plans for upgraded landscaping, new signage, upgraded common areas and further tenant curation. 

“Our objective is to build upon what is already working at Victoria Gardens by thoughtfully evolving the tenant mix and expanding programming and activities that bring people together,” Stenn Parton, Prism Places CEO, said in a statement. “The property is a much-loved town square for the city and region due to its outstanding mix of shopping, dining and community focused amenities.”

Other malls across Southern California have traded hands for nine figures the past couple of years, as well-positioned retail properties have become among the most desirable assets industry-wide. All within the past 18 months, Hines paid $428 million for the mixed-use (though retail-heavy) Runway Playa Vista in Los Angeles’ Playa Vista neighborhood; Pacific Retail Capital Partners, Lyon Living and Silverpeak paid $332 million for Lakewood Center mall in Lakewood; and Stockdale Capital Partners purchased The Oaks mall in Thousand Oaks for $157 million. 

Nick Trombola can be reached at ntrombola@commercialobserver.com.