T
he Rise, a mixed‑use development on the former Vallco Shopping Mall site in Cupertino, is poised to enter its first construction phase in 2026. Sand Hill Property, the developer and landowner, has announced that the initial buildings will begin to rise next year, with residents expected to move into the first homes by 2028.

    Located near the I‑280 and North Wolfe Road interchange, the 52‑acre project will eventually contain 2,669 housing units. The latest plan calls for 356 affordable homes, down from 890 in earlier proposals, and a reduced office footprint of about 1.5 million square feet—compared with the 2 million square feet originally envisioned. The developer stresses that the first vertical construction will focus on affordable housing, underscoring its commitment to the community.

    Town Square West, the project’s centerpiece, will deliver 1,369 units: 232 affordable apartments, 744 market‑rate rentals, and 393 for‑sale homes. It will also feature over 200,000 sq ft of retail space, with an additional 18,000 sq ft slated for later phases. The mixed‑use complex will occupy 20 acres of the site, while the remaining land will host 14 acres of open space, plazas, playgrounds, and a long bike path.

    Sand Hill Property has submitted a revised plan to Cupertino officials, noting that construction financing is still pending. The developer anticipates securing the necessary funding in the coming months, aligning the first phase with market realities. Real‑estate experts point out that lenders favor larger market‑rate units over affordable ones, which can affect financing viability. By prioritizing affordable units in the initial phase, the developer aims to demonstrate its dedication to inclusive housing while securing a solid financial foundation.

    The project also includes a $5 million community benefits package, a result of years of public meetings and negotiations. “We appreciate the city’s partnership and the community’s engagement throughout this process,” said Reed Moulds, project executive and managing director at Sand Hill Property.

    Office demand in the Bay Area remains weak, with high vacancy rates and soft rents making new construction risky without pre‑identified tenants. Consequently, The Rise will develop office space only after market conditions improve, though the developer remains open to future office projects.

    The first phase will feature 202,000 sq ft of retail and restaurant space, creating a vibrant downtown core that the developer hopes will become the heart of Cupertino. “Town Square will be a lively mixed‑use environment that we have aspired to build on this site for many years,” Moulds said.

    In summary, The Rise will transform the old shopping mall into a dynamic neighborhood of homes, retail, and office space, with construction beginning in 2026 and residents moving in by 2028. The developer’s focus on affordable housing, community benefits, and phased financing reflects a balanced approach to revitalizing the area while addressing market realities.