A local real estate investment and operations company is betting it can alter the retail landscape of South Orange County with the debut of the The Commons, a $115 million big-box redevelopment by Irvine-based ValueRock Realty.
The overhauled shopping center, unveiled Dec. 14, includes high profile national and regional brands such as Tesla, 99 Ranch Market, Daiso and Philz Coffee. Those tenants are expected to open to customers next year. Bowlero, a Lucky Strike bowling alley concept, is also slated to open in 2025.
ValueRock repurposed the 21-acre shopping center that was formerly anchored by a Lowe’s with a mixed-use development with 200,000 square feet of retail and a proposed 343-unit residential project.
“We wanted to bring the community of south Orange County together. We wanted something that was incredible and sustainable,” ValueRock Founder and CEO David Lee told the Business Journal.
ValueRock paid $62 million in 2015 for the retail center’s land parcel and initiated a plan to repurpose it in 2017, when big box retailers such as Lowe’s were struggling to stay open. Lowe’s and ValueRock came to terms in 2019 to terminate the Aliso Viejo lease, opening the door for the retail center to be redeveloped.
The real estate company, as part of its plan to rely less on big box retailers, signed Tesla to a lease at The Commons in 2022. Tesla opened a 55,000-square-foot dealership, with nearly 250 dedicated parking spots, at The Commons. It is the largest Tesla dealership in Orange County.
Construction of The Commons kicked off in 2023, with the new retail center now completed and ready for customers.
“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,” Lee said in a statement.
“The vision that we created and the strategy that we executed for The Commons is the formula to reinvigorate retail centers across America.”
ValueRock’s portfolio includes Moulton Plaza in Laguna Hills, Lake Forest Gateway in Lake Forest, The Ranch in Diamond Bar, Five Points Center in Huntington Beach and Paseo del Sol in Temecula.
Bringing Retail to Aliso Viejo
ValueRock spent $53 million on the redevelopment. The company estimated the redevelopment’s value is at $115 million and The Commons would yield $192 million in tax revenue over the next 10 years.
The Commons is ValueRock’s latest attempt to revitalize Aliso Viejo’s retail market. ValueRock bought a nearby Chili’s restaurant at 26631 Aliso Creek Road in Aliso Viejo for $3.75 million in May. The company then bought a former Macaroni Grill at 26641 Aliso Creek Road for $5.3 million in October.
In a statement, the company said it is working on a plan to redevelop about 15,000 square feet of retail space in Aliso Viejo to help transform the community into a destination for dining and shopping.
Aliso Viejo is Orange County’s newest city. The municipality, Orange County’s 34th city, was incorporated in 2001.
