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Cupertino's Vallco Mall Redevelopment Takes Another Step Forward

CoStar Market Insights: Recently Announced Plans to Shake Up South Bay
September 10, 2018
The Vallco Mall at 10123 N. Wolfe Road in Cupertino, California.

After years of inactivity and vacancy, Vallco Mall is set to become the center of activity for the city.

Cupertino Planning Commission just announced its preferred alternatives for the site. The planning commission listed three possible tiers for the 58-acre site, all of which involve both commercial and residential development. No matter which plan is adopted and developed, it will mean big changes for Cupertino.

The Tier 1 option has the least amount of housing built in, keeping the current 35 dwelling units per acre, but maximizes the commercial development. This plan also does not call for any community considerations in the development. This tier has no specifics on how much development would take place on the site at this time.

Tier 2 would add a significant amount of housing at 52.5 dwelling units per acre, which could equate to around 2,030 units, and around 1.5 million square feet of office space. This plan would also include community benefits such as a new City Hall, a new preforming arts center and monetary allocations for traffic demand management and the Cupertino Union School District.

The newest tier proposed would keep the 52.5 dwelling units per acre but would lessen the amount of approved office space from the second tier.

Current owners Sand Hill Property Company’s plans for the mall would bring around 2,400 residential units, 50 percent of which would be affordable, 400,000 square feet for retail and entertainment space and 1.8 million square feet of office to the 58-arce plot. While this plan is currently moving under California Senate Bill 35, the developer is still trying to work with the community to find compromise. It will add to Sand Hill Property’s local projects after building Main Street Cupertino, an adjacent mixed-use property with popular restaurants.

No matter what plan is accepted to replace the mall; Cupertino is going to feel the effects. The currently proposed plans could see the city’s office inventory grow by 23 percent with housing taking an even bigger boost. Ultimately, the City Council will have the final say, but compared to six months ago, the Planning Commission’s alternatives are much more closely aligned with the developer.

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