Invesco Real Estate, the Atlanta-based real estate arm of investment manager Invesco, has acquired a mixed-use development in Playa Vista, California, from Alcion Ventures and its development partners for $475 million, according to real estate data provider Real Capital Analytics.
Alcion, a Boston-based private equity real estate firm, helped fund the construction of Runway Playa Vista, envisioned as a downtown area for Playa Vista, the technology-anchored neighborhood located on the west side of Los Angeles. The other partners in the Runway joint venture were Lincoln Property Company, Paragon Commercial Group and Phoenix Property Company, according to RCA.
Developers originally conceived of turning 1,087 acres of a former airfield into a mixed-use community back in the 1970s, but the project was long-delayed by legal battles from environmental activists. The first residents moved in back in 2002, and construction for Runway began in April 2013. The joint venture put $300 million into the 14-acre project, turning it from a former airfield runway into a mixed-use development complete with cobble-lined streets and a luxury movie theater.
Invesco Real Estate, which has stakes in two other Playa Vista office properties, plans to hold the property for the long term, according to media reports. Playa Vista has become a technology hub outside of Silicon Valley in recent years, with companies including YouTube, Facebook, Yahoo and Google establishing offices there.
Runway includes 420 apartments, 33,000 square feet of office space and 217,000 square feet of retail space, anchored by Cinemark Cinema, upscale grocery store Whole Foods and CVS Pharmacy. The retail component has 90 percent occupancy, according to Lincoln Property, and the apartments are about 50 percent leased, with one-bedroom units starting at $2,800 per month.
The final planned community is slated for an additional 2,180 residential units, 200 units of senior housing, a community center, 11.5 acres of parkland and 25,000 square feet of additional office space.