Silicon Valley developer Sand Hill Property Co.’s ultra-visionary proposal to transform the old Vallco Shopping Mall in Cupertino into a mixed-use hub with what would be the largest rooftop public park on the planet has the Bay Area retail industry on the edge of its seat.
But in the end, will it be too ambitious to pull off?
“It’s a great project. It’s a grandiose project,” said Matt Taylor, Palo Alto-based vice president of retail for commercial real estate services firm CBRE. “But if anyone can pull it off, it’s (Sand Hill co-founder) Peter (Pau) and his group.”
Other industry experts expressed similar confidence, adding that the project’s location and other factors work in Sand Hill’s favor.
Still, the project poses a formidable undertaking considering its innovative design over a large area, experts say.
“I haven’t seen a mixed-use project like that of that scale at least here in the Bay Area,” Taylor said.
“A lot of people are interested to see what will happen,” said Jeff Badstubner, a retail veteran and San Francisco-based senior vice president for commercial real estate services firm JLL. “The attempt is very ambitious, but in order to redevelop that mall, you need something unique.”
Badstubner pointed out that perhaps a comparable project on a smaller scale is social-media giant Facebook’s new headquarters in Menlo Park with the 9-acre green roof of trees, fields and a walking trail loop.
“I think that proved such a project can be done physically,” he said. Then again, a project like that is probably easier to pursue as an amenity than something for which a return of investment is sought.
Sand Hill envisions turning the outdated mall into The Hills at Vallco—a town center that would include 625,000 square feet of retail and entertainment venues; 2 million square feet of office space; and 800 units of market-rate, affordable and senior apartments.
Unquestionably, the highlight of the project’s design is a 30-acre community park and nature preserve that the developer boasts would be the largest green roof in the world. This roof would feature a pedestrian trail network, vineyards, orchards, organic gardens, an amphitheater, children’s play areas and a refuge for native plants and birds.
With recycled-water use, natural ventilation and other energy-efficient elements, the project would also pursue LEED Platinum certification—the top mark for environmentally conscious construction from the U.S. Green Building Council.
The project’s designers are New York-based Rafael Viñoly Architects and Philadelphia-based landscape architect OLIN. Overall, the project would represent a $3 billion investment in Cupertino.
Sand Hill was expected to submit a formal project proposal to the city this month. The project could go before the city’s planning commission and council in the summer of 2016 at the earliest.
Taylor believes the Vallco proposal has a good chance of ultimately happening given Sand Hill’s ability to break ground on impressive projects. As an example, he cited Sand Hill’s Main Street Cupertino mixed-use development, which is under way and expected to connect with the Vallco property nearby.
The Main Street site “was dirt, and now it’s [going to be] beautiful and very high-end,” he said.
Just the fact that Sand Hill was able to assemble various parcels to even reach this point in its Vallco endeavor is remarkable, he said.
Sand Hill pulled together 50 acres from different owners, acquiring the 1.3 million-square-foot mall in late 2014 for nearly $320 million, in an effort to a craft a unifying redevelopment proposal.
Bruce Frazer, San Jose-based senior vice president for retail consultant and brokerage SRS Real Estate Partners, noted that the Vallco project has “great location” going for it.
The site is between the major arterials of Interstate 280 and Stevens Creek Boulevard and near Apple’s current headquarters and the new spaceship campus.
So, the site provides easy access for residents, employees in the vicinity and out-of-town visitors, Frazer said. It is also in a high-income area.
“It can keep traffic down,” he said. “It’s an opportunity to keep things confined to a nice area.”
The project’s mix of uses would also make it viable given the region’s housing crisis and seemingly insatiable appetite for offices. “There’s a need for residences,” Taylor said, “and there’s always demand for offices.”
If a remade Vallco does come to fruition and proves successful, Badstubner said, it could influence future retail projects to incorporate large green or open spaces. “Cities would really want to explore this with developers,” he added.