Hines Lands $380M for First Phase of Riverwalk San Diego Megaproject
The 200-acre, mixed-use development is due to include 4,300 homes and 1 million square feet of office space
By Nick Trombola October 28, 2025 5:26 pm
reprints
Global real estate titan Hines has broken ground on the first phase of its long-gestating, $4 billion mixed-use project in San Diego, and has secured a nearly $400 million funding package to kick-start the development.
Houston-based Hines, alongside equity partner Affinius Capital, landed $380 million in construction financing toward Riverwalk San Diego, a 200-acre development within San Diego’s Mission Valley region. Bank OZK provided a $278 million senior loan, while Related Fund Management provided a $102 million mezzanine loan via its Related Real Estate Debt Fund IV.
“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,” Aram Zakian, Bank OZK’s managing director of originations, said in a statement.
The first phase of Riverwalk will include 721 apartments spread across four buildings, along with green space and 75,000 square feet of grocery-anchored retail. The Gensler-designed phase also includes the Becker, a 190-unit affordable housing complex co-developed by Wakeland Housing and already under construction, as well as a new trolley station for the San Diego Metropolitan Transit System’s Green Line. The project had already landed a $41.1 million affordable housing and sustainability grant from the state in 2023.
“Across the country, we’re seeing a clear shift — the market has reset, and the next cycle is underway,” Ray Lawler, Hines’ head of Americas, said in a statement. “At Hines, we believe this is the moment to act boldly, to invest in projects that reflect long-term fundamentals and deliver lasting value. Riverwalk is a powerful example of that conviction, which plays out in the living sector.”
The grand opening of the first phase is set for spring 2029, with initial homes becoming available in early 2028, per Hines. Riverwalk is due to feature a total of 4,300 homes, alongside 1 million square feet of office space, 150,000 square feet of retail, and 110 acres of parks and open space. The project will also work to restore natural habitat along the San Diego River and upgrade flood capacity along Fashion Valley Road.
The Levi-Cushman family, the property’s owner, picked Hines in the late 2010s to develop the project. Yet, the developer paused work on the development in early 2024, citing high debt and construction costs, and market volatility.
Nick Trombola can be reached at ntrombola@commercialobserver.com.
