Vertical construction at The Rise, the long‑running redevelopment of the former Vallco mall in Cupertino, is now slated to kick off next year, according to the developer’s latest briefing to city officials. Crews have already been busy with demolition, grading, and other horizontal work across the 50‑acre site near the I‑280/North Wolfe Road interchange, and Sand Hill Property Co. says the first residents could start moving into finished homes as early as 2028. For neighbors, the moment buildings start to climb will be the clearest sign that a decade of fights over Vallco has finally shifted from politics to cranes.
Developer timetable and plan updates
In a recent update to city staff, Sand Hill Property Co. laid out a revised construction schedule and slimmed‑down program, according to The Mercury News. The company informed officials that it expects vertical building work to commence in 2026, with a master plan that now calls for approximately 2,669 homes to be built in phases, starting with the first component, dubbed Town Square West, at around 1,369 units.
Sand Hill also informed the city that the newest version of the project reduces the number of affordable housing units compared to earlier iterations, citing approximately 356 affordable units in the current plan. The same update details a $5 million commitment to community benefits and a set-aside of roughly 14 acres for public open space.
Site prep already under way
The current schedule aligns with earlier reports indicating that site preparation and grading are progressing, and the developer intends to commence vertical construction next year. As the Silicon Valley Business Journal noted, the project has already shifted from pure demolition into the phases that shape building pads and infrastructure, setting the stage for towers to follow.
What the plans include
City planning documents and an approved modification show The Rise as a full‑blown mixed‑use village: roughly 2,669 housing units, about 1.95 million square feet of office or lab space, and around 226,000 square feet of retail and restaurant uses, according to the City of Cupertino. The overall concept is staged in multiple phases, with streets, utilities, and open space coming in ahead of, or alongside, the vertical buildings.
City concessions and community reaction
The Rise’s long march to approval included a negotiated fee settlement with the city, and local coverage shows the City Council agreed to waive roughly $77 million in certain development fees as part of that deal. As San José Spotlight reported, the settlement and fee breaks helped clear remaining hurdles but also sparked criticism from some residents and council members, who argued the concessions leaned too heavily toward the developer at the expense of other community priorities.
Financing and market realities
Even with approvals in place, Sand Hill has cautioned city officials that securing construction financing still needs to be finalized. Local reporting indicates that lenders and some real estate watchers have been more inclined to back market-rate apartments with larger units than deeply subsidized affordable buildings. This tilt lines up with the project’s latest revisions.
Those pressures, combined with a tougher lending environment for big multifamily projects, have been cited as reasons for tweaking the program. Broader industry coverage has highlighted how higher borrowing costs and tighter capital markets have slowed or reshaped many Bay Area housing developments in recent years, prompting developers to rethink unit mixes and phasing.
Legal and policy background
The Rise is moving ahead under state streamlining rules and prior approvals, and it sits within the SB 35 framework that shaped earlier versions of the project. The city’s planning pages document the modification approvals and supporting materials. Over the years, the Vallco site has been at the center of lawsuits, ballot measures, and extensive public debate, so shifting into vertical construction represents the end of one long chapter and the start of another in Cupertino’s development saga.
What to watch next: developers and the city will be tracking permit sign-offs, the closing of construction financing packages, and traffic and interchange work tied to the project as crews move from horizontal to vertical construction. If the current schedule holds, Cupertino residents can expect to see the first buildings rise in 2026, with the earliest move-ins around 2028, as the quiet former mall site transforms into a dense mixed-use neighborhood.
