A project that could top $200 million is set to bring luxury condos, buzzy restaurants, boutique retail and a public plaza to fast-growing Victoria.
A new development in Victoria is nearly doubling the size of the small southwest suburb’s downtown, positioning it as one of the next high-end commercial enclaves for the Twin Cities metro.
Plans for the 13-acre site include upscale condominiums (ranging from $795,000 to $2.6 million), trendy restaurants (including Minneapolis hotspots Rosalia and Saturday Dumpling Co.) and boutique retail (such as a Pilates studio and a nail salon).
The years-in-the-making project — which could eventually top $200 million — is a symbol of how the city of 12,500, known more for sprawling subdivisions and farm fields, is rapidly changing.
After the pandemic and aging millennials delivered a boost to the exurbs — and a simultaneous blow to the Twin Cities’ urban core — cities are betting there’s an appetite for more walkable downtown districts across the region.
Victoria’s vision, dubbed the Reserve, leans into luxury. Carl Runck of Monarch Development Partners, which is co-developing the project with the SW Group, hopes it may be comparable to downtowns in nearby Wayzata and Excelsior, or 50th and France on the border of Edina and Minneapolis.
“I’m following where the tailwinds are, and they are here now, much like they were in Minneapolis 10 years ago,” said Runck, who lives five minutes from downtown Victoria and has also done recent projects in Excelsior, Mound and Waconia.
The Victoria City Council selected the developer’s proposal for its long-vacant Downtown West site in early 2025. Because the city owned the land, officials played a greater role in shaping the plans.
As part of the deal, the city agreed to sell parcels for four retail buildings for $1 and subsidize up to $3 million of infrastructure such as sidewalks and sewers.
“It was really important to preserve what we have, that small-town feel that we love,” Mayor Deb McMillan said. “But we’re also excited about the fresh new opportunities and alternatives for people to shop or go out to dinner without having to leave Victoria.”
Expanding downtown
Victoria’s existing downtown sits just north of Hwy. 5, which is now being expanded to four lanes to accommodate the growing region. It already features a handful of restaurants, including the Noble Lion and Vic’s Bar and Grill, and other small storefronts such as a seasonal ice cream parlor and a deli. A flurry of new interest is adding growth beyond the Reserve.
The city acquired the development site in 2006 as part of a land swap allowing Three Rivers Park District to grow the adjacent 3,700-acre Carver Park Reserve. Various ideas for the city land emerged over the years, but they either fell victim to market downturns or got rejected by local leaders.
Officials have long aspired to build on the city’s boutique commercial strip. Residents have been clear: they don’t want big-box stores or hulking apartments, McMillan said.
But there has been little retail construction anywhere in the metro in the face of sagging sales and rising construction costs. So the city concocted a plan to help bring its ambitions to life.
The developers have agreed to restrict rents to $25 per square foot for restaurants and $30 per square foot for retail — a below-market rate for new construction, Runck said. The 10-year limit, which allows for inflationary increases, will enable his team to carefully curate a mix of businesses.
Developers also will fund construction of a 12,000-square-foot public plaza that the city will own and operate upon completion.
“The architecture is really intentional,” Runck said. “It’s enhancing what’s already special about their downtown.”
The first phase of housing will include three buildings with 50 condos, mostly two- and three-bedroom units ranging from 1,350 to 3,250 square feet. Developers paid over $600,000 for that land and are also footing the bill for about $5 million of public infrastructure, Runck said.
The Reserve team has options to acquire the rest of the site for future phases, with tentative plans for another 175 housing units in two additional condo buildings and a luxury apartment complex.
If brought to fruition, the more than $200 million project would comprise about 10% of Victoria’s tax base, according to city estimates.
The development does have skeptics, especially about traffic. At least three of the six people running for the City Council’s four seats this fall said ensuring downtown has enough parking would be a top priority.
But Marc Huebner, a Victoria resident and owner of the Noble Lion, said he thinks the development will be good for the city by drawing more people downtown.
“I want to see it grow tastefully,” he said. “Some people don’t find what they’re doing at the Reserve tasteful, but I don’t know what else you would put there — because I certainly don’t want to see a strip mall with a Supercuts, a Jimmy John’s and an AT&T store.”
A ritzier Victoria
Construction on the retail properties is slated to begin this month, with the goal of opening next fall.
Ten condos have been reserved since presales launched over the summer, and the team will start construction after another 10 sell — hopefully by the end of the year, Runck said.
The housing is relatively novel — and pricey — for Victoria. But Runck thinks it’s a much-desired option for empty nesters considering downsizing, especially in the affluent southwest suburbs.
Peter Prudden of Prudden Co., which is marketing the units, said they’re hoping to attract grandparents who want to move closer to children and grandchildren in the area.
The team is also hoping the cachet of restaurateurs like Daniel del Prado, the owner behind the Rosalia pizza franchise and several other upscale concepts in the metro, may appeal to the pool of buyers for downtown Minneapolis’ most luxurious condos. Both Runck and Prudden have worked on the Eleven high-rise that opened in 2022.
“Being in Carver County, especially right now, is a huge help for us,” Prudden said. “We are seeing buyers living in Eden Prairie, Edina, Minneapolis that, frankly, want to be in an urban footprint, but they want to be outside of Hennepin County.”
Proximity to nature is also a big part of the pitch. The Reserve is nestled next to a pair of lakes and boasts easy access to the Carver Park Reserve and the Lake Minnetonka Regional Trail.
The existing downtown remains a draw, too. Two apartment buildings sprouted in as many years. A boutique hotel is in the works, as is a new restaurant from Erik Forsberg, the owner of Devil’s Advocate on Nicollet Mall.
“This community is shaping what it’s going to look like for the next two or three generations, and it’s fun to be a part of that,” said Forsberg, who is aiming to open Harland Chicken & Fish in November.