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Retail's Evolution

October 1, 2006

Forest City's Jones has one Victoria Gardens regret: the lack of housing on the mall property. The popularity of mixing retail and upstairs condominiums can be seen in several Inland cities, where developers in San Bernardino, Ontario and Riverside are pushing such projects. But mixing downstairs retailing and upstairs living in an Inland mall setting is untested. Development consultant Ralph Megna said it's unfortunate that Victoria Gardens doesn't have in-mall condos because much of the retail area has a second-floor facade to give the look of tall, old buildings.

"In 2001, it would have been an incredibly gutsy decision," he said. "Looking at it today, it's like 'ouch.' "

Condos, however, are planned across Cultural Center Drive from Victoria Gardens. The three-story buildings, with two-car garages, a pool and cabanas, are intended to appeal to urbanites interested in yoga, surfing the Web and collecting wine. Being in or near these types of centers adds value to a home much as proximity to a golf course, lake or mountain view does, said Bob Yoder, president of Shea Homes, which is building the 310 condominiums and townhomes next to the Rancho Cucamonga mall.

Having condos within walking distance of Victoria Gardens, The Promenade Shops and a planned 25-acre center in Chino Hills will boost retail sales early in the week, when business tends to be slow, and provide a built-in population, experts say.

Even so, layering housing above retail would be a shift for the Inland Empire, where homebuyers traditionally have sought houses with yards and are unaccustomed to living with the sights and sounds of an urban core, said Raphael Bostic, research economist with the USC Lusk Center for Real Estate.

"Things are trendy at first, but ultimately, you need a pretty deep market so when the first wave of people moves out, someone else moves in," he said.

Until they go far beyond shopping, centers with sidewalks and fountains are but a step in the evolution of retailing, said Rick Cole, who sat on the Pasadena City Council when the city remade its historic core. He is now city manager of Ventura.

Victoria Gardens has a good shot at becoming more than a mall, especially if condos and extra offices are added, Cole said.

"I think it's a bridge to what people today call mixed-use but for the last 5,000 years of our existence have been called cities, towns and villages," he said.