H
ines, a global real‑estate developer, has paid $428.1 million for Runway, a mixed‑use complex in Playa Vista, according to Bloomberg. The 420‑unit residential tower sits above roughly 630,000 sq ft of retail and office space that includes a Whole Foods, medical clinics and other shops. The purchase signals Hines’ confidence in the enduring appeal of live‑work‑play districts.

    “This deal demonstrates our belief in the long‑term resilience of both housing and retail,” said Alfonso Munk, co‑head of investment management at Hines. “It also fits our strategy of investing in high‑performing, dynamic environments.”

    Runway was originally bought by Invesco Real Estate in 2016 for $475 million, when Playa Vista was emerging as a “Silicon Beach” tech enclave. Since then, the rise of remote and hybrid work has dampened office demand, pushing vacancies up and compressing commercial values in the area.

    Although some segments are picking up, U.S. commercial property prices remain below pre‑pandemic highs. An MSCI index tracking U.S. commercial real‑estate values rose in August year‑over‑year but is still 9.4 % lower than three years ago and 14.9 % below five‑year levels.

    The transaction was negotiated by Brett Norton, Eric Hepfer and Tom Lawless of Hines’ U.S. West team, with JLL’s Blake Rogers representing Invesco. Runway is among the largest mixed‑use deals in Los Angeles this year and underscores Playa Vista’s growing importance to institutional investors eyeing long‑term urban recovery.