Hines Moves Forward on Riverwalk San Diego, Reflecting Conviction in Living Sector

Hines, the global real estate investment manager, in partnership with Affinius Capital, Bank OZK, Related Fund Management, and Heitman, has officially begun construction on phase one of Riverwalk San Diego — a transformative, transit-oriented mixed-use 200-acre village located in the Mission Valley submarket. Phase one will deliver over 700 homes, representing 17% of the total project, which will also include retail, office space and parks.

This project milestone follows the securing of $380 million in construction financing, comprising a $278 million senior loan from Bank OZK and a $102 million mezzanine loan provided by Related Fund Management, which originated the investment through its Related Real Estate Debt Fund IV.

“We are pleased to provide financing to help bring Riverwalk San Diego to life,” said Aram Zakian, Managing Director, Originations at Bank OZK. “This financing underscores our confidence in the project’s strong fundamentals and long-term value, as well as our commitment to supporting well-capitalized developments that contribute to San Diego’s growth.”

Riverwalk San Diego is launching at a strategically significant point in the real estate cycle. Following a period marked by uncertainty – driven by remote work and evolving demand patterns – market fundamentals now indicate a renewed appetite for high-quality, integrated communities. According to Hines Research’s “To Buy or to Build?” analysis, early-cycle development, when supported by long-term vision and strong fundamentals, presents a compelling opportunity. Riverwalk reflects this approach, serving as a benchmark for high-quality, sustainable urban development.

Phase one, designed by Gensler, will deliver 721 market-rate multifamily homes, inclusive of apartments and townhomes, across four buildings, a vibrant village green and 75,000 square feet of grocery-anchored retail. Separately, the initial phase includes The Becker—a 190-home affordable housing community in partnership with Wakeland Housing, which is already under construction – and a new trolley station on the MTS Green Line. The station’s timeline has been accelerated from a later phase thanks to a $41.1 million Affordable Housing and Sustainable Communities grant. The completion and grand opening of phase one is slated for spring 2029, with the first homes becoming available in spring 2028.

“Riverwalk aligns perfectly with the City’s goal of homes integrated within walkable communities, with major infrastructure investments like a new transit stop and river park,” said Mayor Todd Gloria. “I’m proud the City could be a partner in helping this ambitious project navigate challenging conditions, and I couldn’t be more thrilled to see it move forward.”

At full completion, Riverwalk San Diego will transform into a neighborhood that includes:

• 4,300 homes (10% income-qualified affordable)
• 150,000 square feet of retail
• One million square feet of office space
• 110 acres of parks and open space, including a 60-acre regional park
• Restoration of the San Diego River and extension of the River Trail
• Flood capacity improvements to Fashion Valley Road

“This milestone is the result of deep collaboration with the City of San Diego, elected officials, and the many community members who helped shape this vision,” said Eric Hepfer, Senior Managing Director at Hines. “Riverwalk is a transformative project and a lasting investment in San Diego’s future—bringing together much-needed housing, enhanced transit access, and vibrant public spaces within a thoughtfully designed, pedestrian-friendly neighborhood.”

Affinius Capital expressed enthusiasm about embarking on this significant project together. “Our partnership with Hines and the City of San Diego underscores our combined commitment to advancing housing and developing dynamic, transit-oriented mixed-use communities,” said Hailey Ghalib, Senior Managing Director and Head of Housing Investments and Development at Affinius Capital. “Riverwalk San Diego will serve as a model for how thoughtful planning and investment can enhance both livability and long-term value, and we look forward to realizing the shared strategic vision.”

To learn more about Riverwalk San Diego, visit: https://riverwalksd.com/