ValueRock Realty, a national real estate investment and operations company, announced the grand opening of The Commons, a newly repurposed 21-acre mixed-use project located in Aliso Viejo, CA, for Dec.14. The Commons was redeveloped by transforming a nearly 200,000 square foot vacant Lowes Improvement Warehouse into a multi-tenant community center that includes tenants spanning from international restaurants to exhilarating recreational activities; including Tesla, 99 Ranch Market, Daiso, Philz Coffee and others.
“The Commons is an innovative redevelopment to meet community needs,” said David Lee, founder and CEO of ValueRock. “As antiquated big-box retailers continue to reduce space needs, our team envisioned and paved the way for a diverse group of globally and regionally recognized brands to come together to create a dynamic new concept that blends exciting shopping experiences and living. The vision that we created and the strategy that we executed for The Commons is the formula to reinvigorate retail centers across America.”
The Commons, one of the most innovative mixed-use projects in the country, brings nearly 200,000 square feet of retail along with a proposed 343-unit luxury residential project, the latter which helps to address the general state housing shortage. ValueRock purchased the first parcel in 2015 for $62M and began conceptualizing the reimagined project in 2017 as big-box stores began to close rapidly across the country. In 2019, ValueRock negotiated a difficult lease termination with Lowes, which allowed for the site’s redevelopment.
Instead of replacing Lowes with another big box retailer, Lee and ValueRock curated a unique group of tenants that will help revitalize the surrounding area. Leases for The Commons were quickly signed in 2022, even as companies faced residual economic hardship from the Covid-19 pandemic. Tesla was one of the first tenants to sign a lease, which subsequently led to the construction phase of the redevelopment.
“This project presented a perfect opportunity to revitalize Aliso Viejo’s retail sector and the South Orange County region after turbulent times,” said Robert Bunyan, principal of real estate consultants Robert Bunyan and Associates and former executive with the developer of Aliso Viejo. “The Commons, with its destination retailers, will bring added tax dollars to the city, many new jobs, and customers who might otherwise shop outside Aliso Viejo.”
Construction of the project began in 2023 and finalized in late 2024. ValueRock entirely self-funded the approximate $53 million redevelopment, which has a current estimated value of over $115 million. Aside from not using external sources to fund The Commons, the complex is estimated to bring over $192M in tax revenue over the next 10 years following years of no tax revenue due to the site sitting empty. The increase will allow the City of Aliso Viejo to diversify its resources to support the development of more innovative retailers in the future.
Through its experience of redeveloping properties nationwide, ValueRock has the capability to create projects that provide goodwill for their community and beyond. In May of 2024, ValueRock completed the purchase of the former Chili’s restaurant located at 26631 Aliso Creek Road in Aliso Viejo, acquiring the property for $3.75 million. Subsequently, in October of 2024, ValueRock continued its commitment to the trade area by completing the purchase of the former Macaroni Grill located at 26641 Aliso Creek Road for a price of $5.3 million. ValueRock is currently vison planning how to redevelop the estimated 15,000 square-feet to bring further prosperity and high-quality retail space to Aliso Viejo and South Orange County in the coming years.
Tesla, Philz Coffee, 99 Ranch Market and Daiso are scheduled to open by the end of 2024 and additional tenants, including Bowlero (a Lucky Strike concept), will open in 2025.
