Client: ValueRock

Project: The Commons at Aliso Viejo Redevelopment

Services Provided by Hoffman Strategy Group: Market analysis, feasibility study, highest and best use analysis, demand analysis, retail tenant mix strategy, economic impact analysis.

 ValueRock, an Irvine, CA-based real estate development company, sought to revitalize The Commons, a 21-acre property in Aliso Viejo, California, soon after the lease termination of Lowe’s in 2019. The goal was to transform the site into a thriving, mixed-use destination, and they engaged Hoffman Strategy Group (HSG) to develop a strategic plan.

 HSG delivered a comprehensive mixed-use analysis report in August 2020, providing ValueRock with a roadmap for the redevelopment project. This report went far beyond a simple market overview; it offered a detailed vision for The Commons, supported by in-depth analysis, market research, and actionable recommendations.

 Here’s a summary of what ValueRock gained from HSG's involvement:

•  A Clear Understanding of the Market Opportunity: HSG conducted a thorough analysis of the Aliso Viejo and south Orange County market, identifying key demographics, consumer lifestyle trends and habits, spending capacity, and unmet needs. This analysis revealed a significant opportunity to create a demand-driven destination that would attract residents, workers, and visitors from the surrounding areas.

•  Data-Driven Recommendations for Each Use: HSG provided specific recommendations for each component of the mixed-use development. This included: 

  • Multifamily: Recommendations for unit mix, rent premiums, revenue forecasts, and absorption rates, supported by a detailed analysis of the competitive landscape and current market trends.

  • Office: A projection of the supportable office square footage and a targeted recruitment strategy focused on attracting large-footprint tenants in high-growth industries.

  • Food and Beverage: A curated tenant mix strategy with a focus on unique-to-market concepts and local favorites, along with sales projections for each tenant category.

  • Hospitality: While recommending a delayed implementation due to market conditions, HSG provided guidance on the type of hotel, potential brands, and expected performance metrics.

• A Demand-Pull Strategy for Differentiation: HSG recommended that ValueRock pursue a demand-pull strategy for The Commons, focusing on creating a destination with a unique blend of high-quality amenities and experiences that would draw in customers from a wider area. This strategy emphasized understanding and catering to the specific needs and desires of consumers in the market.

•  A Roadmap for Implementation: HSG’s report provided ValueRock with a clear roadmap for realizing their vision for The Commons. This included specific recommendations on phasing, tenant mix, and programming, as well as insights into the competitive landscape and potential challenges.

 Partnering with HSG gave ValueRock a clear, data-driven plan to revitalize The Commons. With HSG’s deep market expertise, strategic insights, and experience in similar projects nationwide, ValueRock had a decision-making framework to turn The Commons into a thriving mixed-use development, delivering a strong return on their investment in the property. 

Read about The Commons in this December 13, 2024, Shopping Center Business article.