Transit-Oriented Development (TOD) is widely promoted and implemented as a strategy for urban and transport sustainability, yet its theoretical account of how it intersects with placemaking and value distribution, remain underdeveloped. This paper proposes a middle-range theoritical framework for TOD that systematically links urban design choices, stakeholder interests, the generation and the distribution of value realisation. Drawing on anthropological and economic theories, the middle-range theoritical framework distinguishes between Value in Exchange, Value in Use, and Shared Value, and maps value accruing to diverse stakeholder groups. The framework integrates welfare economics through Pigouvian, Coasean, and Tieboutian perspectives to address externalities, property rights, and resident mobility, and is operationalised through a results chain that connects interventions to outcomes. The framework is evaluated against Merton's criteria for middle-range theory characteristics: abstraction, logical derivation, and adaptive explanation and offers guidance for empirical research, policy design and intervention. By making value distribution explicit, the framework aims to support effective TOD outcomes across varied land tenure regimes.