Photo above: Moraga Way at Camino Ricardo with the old pear orchard in the Moraga Center area, Moraga, California, 2004. en:User:JD Lisa, Public domain, via Wikimedia Commons.
A grocery store, about a hundred new homes near the two shopping centers, and one old building coming down. At Rheem Valley, a 17,404 square foot Grocery Outlet is under construction with an opening now expected in early 2027. On School Street, the Planning Commission approved 49 townhomes on July 7, 2026, and on Park Street a 49-unit senior affordable building was approved in March 2025. At the Hacienda de las Flores, the Town Council voted to plan the demolition of the La Sala building.
Here is each project, what stage it’s in, and where to check it yourself before you buy near one.
What is happening at Rheem Valley Shopping Center?
A grocery rebuild and two new pad buildings along Moraga Road. The Planning Commission approved the plan on December 12, 2023 (Resolution 13-2023). It replaces about 11,167 square feet of old in-line stores at 536 Moraga Road with a 17,404 square foot grocery building plus a 1,521 square foot shop space, and adds two freestanding buildings of 4,500 and 2,152 square feet facing Moraga Road. The plan removes 75 surplus parking stalls, takes out 20 trees and plants 31 (Town of Moraga, Rheem Valley Shopping Center Partial Redevelopment page, checked September 25, 2026).
The timing slipped. Construction started with a groundbreaking in November 2025 and a target of mid 2026. The construction director for the owner, U.S. Realty Partners, told Lamorinda Weekly that rain, sewer line problems and county issues pushed the Grocery Outlet grand opening to early 2027 (Lamorinda Weekly, June 10, 2026).
Other changes reported at Rheem (Lamorinda Weekly, July 8, 2026, covering the June 24 Town Council economic development update):
- The storefronts were repainted and repaired.
- A Chipotle is planned where the Bank of America ATM stood.
- The Saint Mary’s College Rheem Campus is on the market.
- The Town signed a one-year, $60,000 contract with Kosmont Companies in January 2026 for real estate and economic development advice.
- The largest owner is open to attached housing at the center, but construction costs have risen, and nothing has been filed.
What is planned on Park Street by Rheem?
A 49-unit affordable building for seniors on the vacant lot at the northwest end of the shopping center: four stories, a height of 55 feet 2.5 inches and a ground-floor garage. The Planning Commission approved it on March 11, 2025 (Town of Moraga, Park Street Senior Affordable Multifamily Building page, checked September 25, 2026).
Two things on the Town’s own paperwork don’t match, so here they are plainly. First, the project page’s status line says approved, but its description still says “currently under review.” The Town’s newer July 7, 2026 staff report on School Street treats Park Street as approved and entitled, so approved is the current answer. Neither document says whether building permits have been issued. Second, the unit split differs: the project page lists 40 lower-income and 8 moderate-income units, while the July 2026 staff report lists 39 lower-income, 9 moderate-income and one manager’s unit. Ask the Planning Department where permits stand before you count on a start date.
What is being built on School Street?
Townhomes, if the approved plan goes ahead. On July 7, 2026, the Planning Commission approved 49 townhouse condominiums at 1600, 1620, 1640 and 1660 School Street, near Country Club Drive in the Moraga Center area (Town of Moraga, School Street Townhomes page, DRB-05-25, GR-01-26, SUB-01-26, checked September 25, 2026). The details from that page:
| Item | Approved plan |
|---|---|
| Site | 2.95 acres, four office buildings to be demolished |
| Homes | 49 townhomes, five of them below market rate |
| Buildings | Eleven buildings, all three stories, tallest 41 feet 8 inches |
| Bedrooms | Three or four in every unit |
| Parking | 114 spaces, including a two-car garage per unit |
| Trail | Nearest building 1.9 feet from the Lafayette Moraga Trail |
This is the same block where the Town approved a different project, the 66-unit 1600 School Street Apartments. The Planning Commission approved it on October 29, 2024, and the Town Council denied an appeal and approved it after a January 15, 2025 hearing (Town of Moraga, 1600 School Street Apartments page, checked September 25, 2026). That page still lists the apartments as “Pre-Construction.”
So which one gets built? Only one can. The Town’s July 7, 2026 staff report on the townhomes says the two projects are mutually exclusive, and if the townhomes are approved and built, the earlier apartment approvals “will no longer be in force and effect” (Town of Moraga, Planning Commission staff report, item 6.A, July 7, 2026, read September 25, 2026). Until the townhomes are actually built, both approvals sit on the Town’s books. If you’re looking at a home on School Street or Country Club Drive, ask the Planning Department which one the owner is moving forward with.
What is happening at the Hacienda de las Flores?
The La Sala building is set to come down. It was added in 1977 to the Hacienda grounds at 2100 Donald Drive, where the main building dates to 1916. On July 8, 2026, the Town Council received a report on La Sala and directed staff to proceed with demolition planning (Town of Moraga, About Town staff update, July 9, 2026).
Lamorinda Weekly reported the vote was 3 to 1 with the Mayor recused, that an April 2026 assessment found water damage, and that the building has been closed since. The engineer’s estimate for demolition is $150,000 to $250,000. Staff hoped to demolish before the rainy season but said they could not promise it (Lamorinda Weekly, August 12, 2026). The rest of the Hacienda stays in use for events.
What replaces La Sala long term goes into the Town’s Parks, Recreation and Open Space Master Plan. The Council and the Parks and Recreation Commission reviewed the draft recommendations on September 9, 2026, and the plan is back before the Parks and Recreation Commission on October 12, 2026 (Town of Moraga, PROS Master Plan page, checked September 25, 2026).
Are there other approved homes in Moraga?
One small hillside subdivision. Hetfield Estates is seven clustered single-family lots on a 58.2-acre site zoned Moraga Open Space, at the south end of Hetfield Place below Sanders Drive. It needs a new bridge over the creek, and the Town Council approved the Final Map on April 27, 2022. The Town’s page now lists its status as “Grading/Construction” (Town of Moraga, Hetfield Estates Subdivision page, checked September 25, 2026), and the July 7, 2026 staff report notes a design review for the seven homes with ADUs was approved in 2026.
How much more housing does Moraga have to plan for?
1,118 homes by 2031, on paper. That is Moraga’s share of the Bay Area’s state-set housing need for 2023 to 2031, and 673 of those units fall in the affordable income categories (Town of Moraga, Affordable Housing page, checked September 25, 2026). The Town adopted its Housing Element on January 25, 2023, and the state found it in compliance in a September 14, 2023 letter (Town of Moraga, 2023-2031 Housing Element page, checked September 25, 2026).
Planning for a number is not the same as building it. The Town says zoning alone does not create development, and each project needs its own application. Since December 7, 2022, new developments of six or more units must make 10% of them affordable (Town of Moraga, Affordable Housing page).
Will these projects change home values nearby?
Nobody can tell you that ahead of time, and we won’t guess. What you can do is know exactly what is approved near a house before you write an offer. Pull the project page, look at the site plan, and walk the block at the hour you’d be driving it.
How do I keep track of a project near a house I like?
Go to the source. Three steps:
- Read the Town’s project page. Each one lists the approvals, dates and staff reports.
- Check the meeting calendar. Coming up: Town Council on October 14 and October 28, 2026, and the Planning Commission on October 20, November 3 and November 17, 2026 (Town of Moraga calendar, checked September 25, 2026). Meetings are open and livestreamed on the Town’s YouTube channel.
- Sign up for About Town. The Town’s staff update lists Council actions, road work and events.
If a question gets into zoning rights, a lawsuit or what you can build on your own lot, take it to a land use attorney or the Planning Department.
Questions people also ask
When will the Grocery Outlet in Moraga open?
The owner now expects an early 2027 grand opening, per U.S. Realty Partners’ construction director in Lamorinda Weekly on June 10, 2026. The original target was mid 2026. Rain, sewer line problems and county issues caused the delay. The store is the 17,404 square foot grocery building the Planning Commission approved at Rheem Valley Shopping Center in December 2023.
How many townhomes are planned on School Street in Moraga?
Forty-nine. The Planning Commission approved 49 three-story townhouse condominiums at 1600 to 1660 School Street on July 7, 2026, with five below market rate units and three or four bedrooms each, per the Town’s project page checked September 25, 2026. Four office buildings on the 2.95-acre site would be demolished first.
Is the La Sala building at the Hacienda being torn down?
Most likely. On July 8, 2026, the Town Council directed staff to proceed with demolition planning for La Sala, the 1977 addition at the Hacienda de las Flores, per the Town’s July 9 staff update. Lamorinda Weekly reported a $150,000 to $250,000 demolition estimate and no firm date, only a goal of finishing before the rainy season.
How many new homes does Moraga have to plan for by 2031?
Moraga’s Housing Element plans for 1,118 new homes from 2023 to 2031, with 673 in the affordable income categories, per the Town’s Affordable Housing page checked September 25, 2026. The state found the plan in compliance in September 2023. That is room zoned for homes, not a count of homes under construction.
Your next step
Found a house near Rheem or School Street? We’ll pull the project pages, the approvals and the recent sales around it so you can see the whole picture before you offer. Talk to a Moraga agent on our team or call (510) 949-5525.
More on Moraga: Is Moraga a good place to live? · Moraga market update · What’s my home worth?
By Bill Davis, DRE #01880656, The Davis Team at eXp Realty, Moraga, CA. Updated September 25, 2026.
Sources
- Town of Moraga, Rheem Valley Shopping Center Partial Redevelopment: moraga.ca.us/576 (checked September 25, 2026)
- Town of Moraga, Park Street Senior Affordable Multifamily Building: moraga.ca.us/596 (checked September 25, 2026)
- Town of Moraga, School Street Townhomes (DRB-05-25, GR-01-26, SUB-01-26): moraga.ca.us/641 (checked September 25, 2026)
- Town of Moraga, 1600 School Street Apartments: moraga.ca.us/573 (checked September 25, 2026)
- Town of Moraga, Planning Commission agenda and staff report, item 6.A, School Street Townhomes, July 7, 2026 (read September 25, 2026)
- Town of Moraga, Hetfield Estates Subdivision: moraga.ca.us/168 (checked September 25, 2026)
- Town of Moraga, Affordable Housing: moraga.ca.us/537 (checked September 25, 2026)
- Town of Moraga, 2023-2031 Housing Element: moraga.ca.us/570 (checked September 25, 2026)
- Town of Moraga, Parks, Recreation and Open Space Master Plan: moraga.ca.us/636 (checked September 25, 2026)
- Town of Moraga, About Town staff updates, July 9, 2026 and September 10, 2026, and the Town calendar: moraga.ca.us (checked September 25, 2026)
- Lamorinda Weekly, “Grocery Outlet opening falls behind schedule,” June 10, 2026: lamorindaweekly.com (checked September 25, 2026)
- Lamorinda Weekly, “Notable improvements to Rheem Valley Shopping Center,” July 8, 2026: lamorindaweekly.com (checked September 25, 2026)
- Lamorinda Weekly, “Hacienda’s La Sala building headed for demolition,” August 12, 2026: lamorindaweekly.com (checked September 25, 2026)