With the return of Elyse Walker, Pacific Palisades’s outdoor shopping mall is staging a comeback after the California wildfires devastated the neighbourhood.

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(From left to right) Rick Caruso, Elyse Walker and Corinne Verdery announce the new Elyse Walker flagship slated for Palisades Village in 2026. Photo: Courtesy of Caruso

The road to business recovery in Pacific Palisades, the upscale neighbourhood destroyed by the deadly Los Angeles wildfires in January, is beginning at Caruso outdoor shopping centre Palisades Village, which plans to reopen in early 2026.

In a demonstration of his community-first approach to retail, real estate magnate and politician Rick Caruso will make a $50 million capital investment in the property, the streetscape outside and a new tenant: Elyse Walker, the multi-brand luxury retailer whose nearby flagship was lost in the fires. The new Elyse Walker store will take over the prime corner spot previously occupied by Saint Laurent.

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The new Elyse Walker flagship slated for Palisades Village in 2026. Photo: Courtesy of Caruso

The announcement was made at a press conference held on Wednesday at the bucolic-looking shopping village amid Brunello Cucinelli, Eres and Zimmermann storefronts. The shops mostly escaped damage thanks to Caruso’s private firefighting force, making the scene a stark contrast to the burned-out homes and buildings still being worked on by disaster-recovery teams.

“Caruso does business with Apple and other big companies, but also values smaller businesses, family and community,” says eponymous business owner Elyse Walker of choosing to relocate her 25-year-old luxury flagship, which primed the market for Palisades Village to open in 2018 and is now the cornerstone of her own seven-store fleet.

“Welcoming Elyse to our front door gives us momentum and it’s going to be a catalyst for everybody coming back,” says Caruso CEO Corinne Verdery, adding that most tenants have said they will be returning, despite a few still assessing.

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Corinne Verdery, CEO of Caruso. Photo: Courtesy of Caruso

Although less visible than her boss, high-profile former LA mayoral candidate Caruso, Verdery has been a key driver of the success of the former’s portfolio of Southern California outdoor retail, residential and hospitality centres including Palisades Village, The Americana at Brand, The Grove as well as the shops at Rosewood Miramar Beach resort.

Verdery has steered the properties through natural disasters, Caruso’s divisive mayoral campaign and the pandemic. She’s expanded the luxury tenant assortment, managed such high-profile entertainment events as a Spotify pop-up with Taylor Swift, and the first televised holiday tree lighting extravaganza at The Grove, attracting a range of customers from Gen Zs to families, leading to a company-wide 10 per cent increase in foot traffic and 5 per cent increase in sales per square foot between 2023 and 2024.

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The Grove. Photo: Connie and Stewart Photography for Caruso

In 2024, Caruso had the best results in its 38-year history, witnessing 7 per cent net operating income growth with no outside equity partners (the company doesn’t share revenue figures). And looking ahead, the private company will add more than 40,000 square feet of retail and entertainment space in 2026 and 2027 with the expansion of The Commons at Calabasas and the shops at Rosewood Miramar.

“When Rick hired me eight and a half years ago, the mission he gave me was to double the net operating income of our company. And we’ve done that,” says Verdery, who grew up in Oahu, Hawaii, and was the first in her family to graduate from college. According to Verdery, the property is at 99 per cent occupancy, while new leases signed in 2024 increased in value by 45 per cent.

“She’s just a great mix of a very smart businesswoman and also deeply compassionate,” Caruso says of Verdery’s success.

So far, Verdery has not seen a trickle-down impact from the luxury slowdown or tariff shock.

“In terms of foot traffic, we have not seen it slow down. Tariffs may impact the way goods are flowing, but it doesn’t change our job to create these beautiful places and engaging events and moments for people so that they continue to want to come here and stay longer,” she says. “Caruso properties are built for the long haul. Our vision and our perspective are very long term, and the connections that we’ve built with the communities that we’re serving stand the test of time.”

On a recent sunny afternoon at The Grove, Verdery was gamely playing ring toss around oversized perfume bottles at the Chanel Chance eau de parfum activation on the shopping centre’s green as media and VIPs sniffed and snapped photos inside the luxury brand’s three-week takeover of the property’s engaging “glass box” pop-up space, which had been made over to look like Chanel beauty packaging.

 

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Chanel’s three-week takeover of the property’s engaging “glass box” pop-up space, which had been made over to look like the brand’s beauty packaging. Photo: Courtesy of Chanel

“What we’ve learnt with Gen Z is that the camera shops first, and our activations are designed to drive foot traffic, as well as content,” she says of the concept recently expanded to The Americana, used by Skims, Tory Burch, Revolve and a host of other brands to introduce new product and test the market for standalone retail.

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The Americana at Brand. Photo: Connie and Stewart Photography for Caruso

Verdery’s first job was working in the theme park division of NBC Universal before she segued into commercial real estate, joining Caruso as chief development officer in 2016.

“What I bring from my theme park experience is my ability to build deep connections with the communities that we serve, ensuring that there’s something for everyone, and enhancing and focusing on the guest experience at every touchpoint… Being raised at Universal Studios, I’m also very big on brand. And so, while no two Caruso properties are the same, each has a signature Caruso look and feel,”

Verdery says of the nostalgic, all-American main streets, manicured lawns, trolley rides and dancing fountains that in many ways resemble a theme park.

The clean, safe and secluded-from-the-city vibe has pushed monthly apartment rental rates to $6,000 and condominium prices to $1.2 million at The Americana, which has a starring role on the current season of the HBO Max TV show Hacks, with Gen Z protagonist Ava Daniels (Hannah Einbinder) living at the outdoor shopping centre and availing herself of such handy conveniences as an early-morning Sephora makeup application.

The future Caruso retail-residential and entertainment developments in and outside of California are part of a “more mixed-use” strategy, Verdery says, including hotels. “We know that our customers want to be in the full ecosystem,” she explains.

Verdery created the Caruso loyalty and rewards programme to connect it all, allowing members to accrue points from rent paid and spend them on a Miramar hotel stay, for example. In 2024, the programme drove a 54 per cent increase in total transactions and a 33 per cent increase in average transaction value across the entire portfolio, she says.

The properties host as many as 200 events and activations annually, which helps to drive traffic and revenue further.

Although the Hacks exposure was not paid placement, being in LA has created opportunities for unique partnerships. An Apple Studios tie-up, for example, led to The Grove’s movie theatre hosting the premiere of Apple original The Gorge, as well as subsequent sponsorship from the tech giant for all kids and family across its properties.

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The Americana has a starring role on the current season of the HBO Max TV show Hacks, with Gen Z protagonist Ava Daniels (Hannah Einbinder) living at the outdoor shopping centre. Photo: HBO Max

Caruso has been on an accelerated trajectory since Covid, according to Verdery, with more shoppers craving outdoor environments and luxury brands opening stores to satisfy pent-up demand, driving luxury to a third of the properties’ overall tenants.

The company is continuing to carve out the luxury market in Glendale, while luring newcomers Louis Vuitton, Loro Piana and Rolex to the portfolio. “I also saw a lot of luxury brands wanting to go more local, and we checked that box for them. When they walked the properties with us, they realised this is not a mall, this is street-front retail,” she says.

Verdery was elevated to CEO in 2022 after Caruso, who was CEO at the time, decided to run for mayor.

“It was tough during the campaign because companies big and small negotiating with us for some issue or lease… would use the media and that moment as a platform to try and get some leverage,” says Verdery.

“You know, in the city of LA, there are people that are supporters and there are people that are not. Having said that, I think people learnt what kind of business we are, and they learnt all the wonderful things that Rick does through the company.”

In February, Caruso established Steadfast LA, a non-profit coalition of private sector leadership including Verdery, working to rebuild the Pacific Palisades, including the recreational centre, park and now the commercial district.

Verdery says: “At the end of the day, what I’ve learnt from him is not just how to be great at business, but how to be a good human being.”

“Just five months ago, we watched our beloved community experience incredible loss and my team and I lost our flagship, our work home,” says Walker, still emotional, but also relieved to be entering into a new chapter with Caruso. “This one has heart and passion. And in my career, I have found when I follow my gut and do it from the heart, it is more successful.”