Redwood West, Panattoni JV Spends $530M On Victoria Gardens Mall
The Inland Empire open-air mall Victoria Gardens sold to a joint venture of Redwood West, Panattoni and Prime Finance for $530M.
The more than 1M SF Rancho Cucamonga lifestyle center generates over $1.1K per SF, according to a release from the new owners. The mall is 98% leased. The sale of the mall works out to about $441 per SF.
“We see tremendous opportunity with Victoria Gardens,” Redwood West co-founder and Managing Partner John Pomer said in a statement. “It is a one-of-a-kind, highly productive asset with deep roots in the region."
The mixed-use Lido Marina Village in Newport Beach and the Peninsula Village in Newport Beach are among Redwood West’s portfolio, which was previously populated with industrial and office properties.
Prime Finance is a CRE lender and investor with $14.3B assets under management.
Prism Places is a national owner and operator with 4.4M SF under management, about 75% of which is retail. Last year, Prism Places was named the property manager for Santa Monica Place, the 527K SF retail center that Macerich previously owned and that is now in receivership.
An Ares Real Estate fund provided debt financing in an undisclosed amount for the transaction. The new ownership group tapped Prism Places as the leasing and property manager.
Tenants at the mall, 12505 N. Mainstreet in Rancho Cucamonga, include Apple, Lululemon, Chanel, Sephora, Nike, AMC Theatres, Shake Shack, The Cheesecake Factory, Fleming’s Steakhouse and Macy’s.
The ownership team plans to invest more than $50M into property upgrades, with enhanced landscaping, new signage and revitalized common areas at the top of the list.
The sellers were Brookfield Properties' retail division GGP and Queensland Investment Corp.
In 2024, Brookfield and QIC refinanced about 700K SF of the mall for $265M. Barclays and JPMorgan Chase originated the five-year, floating-rate loan, which was then packaged into a CMBS deal, The Real Deal reported at the time.
Brookfield is also looking to sell its FIGat7th shopping mall at 735 S. Figueroa St. in Downtown Los Angeles. It’s unclear whether a sale is imminent for that property as well.
GGP did not immediately respond to a request for comment on the sale.
Most malls have struggled over the past few years amid the rising prominence of online shopping, but some have found favor with younger shoppers. Stores that cater to these younger consumers are even looking to bring physical stores into malls.
UPDATE, MARCH 12, 2:09 P.M. PT: This story has been updated with additional details about the transaction and new ownership.
