An Orange County joint venture earlier this month acquired the Inland Empire’s Victoria Gardens for $530 million.
The JV, led by Newport Beach-based Redwood West and Irvine-based Panattoni purchased the Rancho Cucamonga lifestyle center from Brookfield Properties and Queensland Investment Corporation in one of the largest retail transactions in Southern California in recent years.
The JV plans to spend another $50 million to modernize the open-air shopping center that totals 1.2 million square feet.
The partnership also comprises Prime Finance and Prism Places, with debt financing provided by an Ares Real Estate fund, according to the joint venture. Prism Places will manage leasing operations.
Redwood West co-founder and Managing Partner John Pomer told the Business Journal that they bought the property because of its strong performance and are bullish on the growth of the Inland Empire market. Officials said Victoria Gardens generates more than $1,100 per square foot in retail sales.
“Victoria Gardens is one of the most successful open-air lifestyle destinations in the country,” said Pomer. “What attracted us most is the strength of the market, the surrounding population growth and the role the property already plays as the community’s central gathering place.”
Although the Victoria Gardens master plan encompasses 1.2 million square feet, the sale excludes three department stores that remain under separate ownership.
Inland Empire Retail
The retail investment comes as open-air retail centers across the Inland Empire continue to attract shoppers and investors despite sector changes driven by evolving consumer shopping habits.
According to the Kidder Mathews Q4 report, the Inland Empire retail market ended 2025 with a vacancy rate of 6.4%, up 60 basis points from 5.8% the previous year.
Average monthly rents were $1.69 per square foot, down 2.3% from the previous year.
Despite these shifts, joint venture officials rely on Victoria Gardens’ reputation as the premier shopping destination in the Inland Empire.
Redwood West Managing Partner Colby Cyburt told the Business Journal that they plans are underway to enhance the visitor experience at the open-air center, which attracts about 15 million visitors each year and is one of the busiest lifestyle centers in the country.
“Visitors will notice enhancements to common areas, upgraded outdoor seating and gathering zones, refreshed storefront presentations and expanded programming that activates the property throughout the year,” said Cyburt.
Victoria Gardens is about 98% leased to around 160 retailers and restaurants, including Apple, Lululemon, Chanel and The Cheesecake Factory. The property also features AMC Theatres and the Victoria Gardens Cultural Center, which includes a public library and a performing arts venue.
Over time, Cyburt said they plan to adjust the tenant mix as leases come up for renewal.
“As certain legacy tenants experience natural turnover, we will continue to strategically curate improvements to the overall tenant base,” Cyburt said, adding that the JV is particularly interested in expanding luxury brands, upscale retail and elevated dining concepts.
High Performing Asset
Given the premium per square foot they paid, Pomer said high-performing retail centers continue to attract institutional investors.
“When we evaluate a property like Victoria Gardens, we look well beyond a simple price-per-square-foot comparison,” he said. “The valuation reflects the center’s performance, its nearly full occupancy, the quality of the tenant base and its position as the dominant lifestyle center in the Inland Empire.”
He anticipates a retail upswing driven by consumers’ preference for well-located, experience-driven retail centers.
“The online marketplace has become overly saturated and humans continue to crave in-person experiences and connecting with others,” he said.
