Cupertino retail space to become townhomes

Dozens of townhomes will soon fill a key location in the heart of Cupertino that’s been vacant for years.

The Cupertino City Council unanimously approved a 59-townhome development earler this month, located at 20770 to 20850 Stevens Creek Blvd. San Ramon-based SummerHill Homes will develop the project to replace two vacant buildings, formerly Fontana’s Italian Restaurant and Pizza Hut, along with an operating Staples. The three and four-story development will sit on nearly three acres and provide 12 affordable homes.

Construction is expected to begin next year after Staples’ lease expires in February. The office supply company, which did not respond to a request for comment, does not have relocation plans in the city.

Councilmember Sheila Mohan said this is the kind of project she wants to see in Cupertino. She said ideally, the development would include some retail, since the city will lose approximately 30,000 square feet of commercial space after the homes are built. But she added the market isn’t conducive to retail right now and there’s a greater need for housing.

The project will also provide a public plaza and about $2.54 million in park in-lieu fees toward city green space and recreation.

“It is a perfect location, and the developers have been very cooperative in working with the city to devise a plan or a design so it works for all,” Mohan told San José Spotlight.

Kevin Ebrahimi, SummerHill Homes senior vice president of development, said the project will help revive the longtime vacant site in the heart of one of the city’s shopping and restaurant districts.

“Cupertino, like all California cities, is facing a housing crisis, and every new home makes a difference,” he told San José Spotlight. “This project will provide 59 families with the opportunity for homeownership, which is increasingly rare compared to many other developments that are rental-focused.”

The development has fewer homes than the city intended for the site. Cupertino’s state-mandated housing plan requires the city to build nearly 5,000 new homes by 2031. The city planned for about 200 homes at the site, but SummerHill Homes will provide 59 because its application cited Senate Bill 330. The state law makes it easier to build affordable and moderately priced housing and allows the developer to waive certain density requirements.

The project only provides moderately-priced housing for households making about 80% of Santa Clara County’s area median income and above — $156,160 annually for a family of four, according to 2025 data. Plans don’t include homes affordable for low-income residents.

Jean Bedord, longtime resident and member of housing-friendly group Cupertino for All, would have liked to see more affordable housing in the project, but said townhomes are good for young families as starter homes.

“I want them to get shovels in the ground,” she told San José Spotlight.

Nearby businesses are on board with the development.
Emad Ibrahim, owner of DishDash, said the development’s future residents will be able to walk to his restaurant, creating greater community than the vacant buildings and Staples.

“The (closeness) of the residents directly next door will bring great tailwinds to my business, which I hope will stay for decades to come,” he said at the council meeting.

Contact Annalise Freimarck at [email protected] or follow @annalise_ellen on X.