Cupertino Mall Transformation Begins with New Residential Plans

The long-anticipated transformation of the Vallco Shopping Mall in Cupertino into a vibrant mixed-use community is set to begin. Developer Sand Hill Property Co. announced that construction for the first buildings of The Rise will commence in 2026, marking a significant milestone in the redevelopment of the site.

This project aims to create a lively neighborhood featuring homes, shops, restaurants, and offices, all located near the intersection of Interstate 280 and North Wolfe Road. The initial buildings are expected to be part of a plan that includes thousands of housing units, retail spaces, and communal areas. Reed Moulds, project executive for The Rise, expressed his enthusiasm, stating, “This is going to be the heart of the project. We are now talking about vertical construction, and we are starting with Town Square West.”

One notable change in the current plan is a reduction in the number of affordable housing units. The latest version of the project includes 356 affordable housing units, a significant decrease from the previous proposal of 890 affordable homes. This shift indicates a higher proportion of market-rate rentals and for-sale homes, which aligns with the current market conditions. Moulds reassured stakeholders about the commitment to affordable housing, stating, “The first thing we are going to build is affordable housing. We are demonstrating our commitment to affordable homes.”

Construction Timeline and Project Details

According to Sand Hill Property, residents could start moving into the first homes by 2028. Construction is projected to begin in mid to late 2026, when “real buildings” will rise from the ground. The first phase of Town Square West will encompass 1,369 housing units, which includes 232 affordable apartments, 744 market-rate rental units, and 393 for-sale homes. Additionally, the phase will provide over 200,000 square feet of retail space.

Moulds noted that construction financing is still in progress and is expected to be finalized in the coming months. This financing strategy is vital for aligning the project’s first phase with what is considered feasible in the current economic climate. Real estate experts have indicated that lenders generally favor financing market-rate apartments over below-market-rate units, creating challenges for affordable housing developments.

Community Impact and Future Directions

The Rise is designed to contribute significantly to the local economy and community. In addition to housing, the project aims to offer 202,000 square feet of retail and restaurant spaces in its initial phase, with an additional 18,000 square feet planned for later stages. The project will also include 14 acres of open space featuring plazas, playfields, and bike paths, fostering a vibrant environment for residents and visitors alike.

Moulds emphasized the importance of community engagement throughout the planning process, stating, “We appreciate the city’s partnership and the community’s engagement throughout this process.” The project will also deliver $5 million in community benefits, reflecting the years of public discussions and planning that have shaped The Rise.

While plans for office spaces have been scaled back—now envisioned at 1.5 million square feet, down from 2 million square feet—Moulds indicated that office development remains a possibility in the future. The current market conditions have led to elevated office vacancies, influencing the decision to reduce office space in the project.

With its innovative design and community-focused elements, The Rise aims to become a central hub for Cupertino, embodying a modern vision for urban living that melds residential, commercial, and recreational spaces. As the project progresses, it will be closely watched by local residents and stakeholders eager to see the revitalization of this once-iconic shopping destination.