Victoria Exchange Development and Sundance Construction have broken ground on the first phase of a new shopping center called Victoria Village. The project’s costs are expected to be close to $25 million.

The shopping center will include space for seven retailers or restaurants near the Kohl’s Department Store. Burlington Coat Factory, Five Below and Ulta Beauty have signed leases for the space.

The first phase of the development, which will include four retail spaces, will finish in the spring of 2026. Construction on the second and final phase will begin in August of this year and finish in August 2026. 

Victoria is a town of 60,000 residents about 115 miles southeast of San Antonio and 120 miles from Houston.

The City plans to partner with the Victoria Sales Tax Development Corporation to provide up to $500,000 in sales tax rebates, to be paid in five yearly installments if the development meets agreed-upon sales tax milestones.