- Hines paid $428.1M for Runway, a 420-unit multifamily and 630K SF retail and medical office complex in Playa Vista, Los Angeles.
- Invesco Real Estate sold the property, which it acquired in 2016 for $475M, reflecting a slight capital loss.rn
- The deal underscores Hines’ confidence in mixed-use and living-retail assets, even as the Playa Vista office market grapples with rising vacancies and discounted sales.rn
Hines Bets On Playa Vista
Hines has completed the $428.1M acquisition of Runway, as reported by Bisnow. The property is a flagship mixed-use development located in Playa Vista, one of Los Angeles’ most prominent master-planned communities. The asset includes 420 multifamily units and 630K SF of commercial space anchored by a Whole Foods, along with dining, medical office, and retail tenants.
The deal was led by Hines’ US West team: Brett Norton, Eric Hepfer, and Tom Lawless. It signals the firm’s continued shift toward assets that combine residential living, convenience, and experiential retail.
Selling At A Loss
The seller, Invesco Real Estate, originally purchased Runway in 2016 for $475M. The sale price of $428.1M suggests a roughly 10% decline in value over that period, reflecting broader market trends in Westside LA.
Though Playa Vista once thrived as a hub for tech companies, the post-pandemic era has brought challenges, with remote work weakening demand for office space. Rising vacancy and sublease rates, along with distressed office sales, have created headwinds for the neighborhood.
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Mixed-Use Over Office
Despite a cooling office market, Hines sees long-term opportunity. “This acquisition reflects our conviction in the long-term strength of the living and retail sectors,” said Alfonso Munk, Hines’ co-Head of Investment Management. The firm views high-performing mixed-use environments as aligned with its growth strategy.
JLL’s Blake Rogers represented Invesco in the transaction.
Market Context
The commercial property sector remains volatile. While an MSCI index tracking property values showed a year-over-year uptick in August, prices remain down 9.4% from three years ago and 14.9% below five-year highs.
What’s Next
Hines’ move suggests that capital may be returning to stabilized, mixed-use urban properties. This is especially true in dense neighborhoods where office demand is lagging, but residential and retail fundamentals remain strong.
