Hines Buys Runway In Playa Vista From Invesco For $428M

Courtesy of JLL
Playa Vista's Runway mixed-use complex has a popular Whole Foods as its anchor.

Hines dropped $428.1M on Runway, a retail and residential property in the master-planned Westside neighborhood of Playa Vista, Bloomberg reported.

The property holds 420 multifamily units and 630K SF of dining, medical office space and grocery-anchored retail, including a Whole Foods.

The purchase reflects “our conviction in the long-term strength of the living and retail sectors, and our commitment to deploying capital into high-performing, mixed-use environments that align with our growth strategy,” Hines co-Head of Investment Management Alfonso Munk said in a statement.

The seller was Invesco Real Estate, which bought the property in 2016, paying $475M, the Los Angeles Times reported at the time.

In 2016, Playa Vista was a burgeoning tech office hub, but the area has experienced fallout from the adoption of remote and hybrid work. The effects have shown up in a rise in vacant space and sublease space as well as discounted office sales.

An MSCI index that tracks commercial property price changes was up in August from a year earlier but is still down about 9.4% from three years ago and down 14.9% from five years ago.

Brett Norton, Eric Hepfer and Tom Lawless, members of Hines’ U.S. West team, led the acquisition. JLL Senior Managing Director Blake Rogers represented the seller.

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