Hines’ Vision Behind Its $3B San Diego Development

Developer Hines is planning a massive $3 billion mixed-use transit-oriented development in San Diego. Currently in the planning phase, Riverwalk San Diego is on a 200-acre former gold course and 4,300 homes, of which approximately 400 will be affordable, 150,000 square feet of retail space, 1 million square feet of office space, 97 acres of open space, including a 50-acre river park. The project will also restore a portion of the San Diego River and add a new trolley stop.

“Riverwalk will be the first transit-oriented village in San Diego and will represent a new way of creating, complementing and revitalizing communities,” Eric Hepfer, managing partner at Hines, tells GlobeSt.com. “It has an important role to play in social equity by providing housing, employment and recreation opportunities in environmentally efficient locations near transit.”

The development will become the anchor of the Mission Valley neighborhood. “Riverwalk will also help define the western Mission Valley neighborhood of San Diego, which has been dominated by retail and hotel properties and has lacked a cohesive neighborhood identity and adequate park space,” says Hepfer.

The golf course was an ideal development site for the project. It is an underutilized piece of land in a market in growing need of housing and amenities. Redeveloping golf courses into higher and better uses is growing in popularity. “Golf courses are currently a popular target for redevelopment, given the declining golf patronage, the increasing cost of water, increasing labor costs and the declining supply of developable land,” Pete Shearer, an associate at Hines, tells GlobeSt.com. “This location is an urban infill opportunity, adding density around an existing transit line, within close proximity to jobs and amenities. While most urban infill projects result in displacement or gentrification, Riverwalk provides new housing for 8,000 San Diegans without displacing a single resident.”

However, the site also comes with challenges. “One of the biggest challenges of redeveloping a golf course is the trade-off between building and open space. Surrounding communities often appreciate the views they have of the course’s greenery and open space. Recognizing this, at Riverwalk, we’re setting aside nearly half the land as open space, including an 80-acre public park,” says Hepfer. “The surrounding community will still enjoy views of natural space but also be able to access that space everyday rather than it being reserved for golfers.”

There is growing demand for masterplanned communities and housing in San Diego. “Earlier this year, the City of San Diego completed its Mission Valley Community Plan Update, which provides a roadmap to creating a transit-oriented, walkable and bikeable community—a change from its history as a location for shopping malls and hotels,” says Hepfer. “Consistent with that community plan, Riverwalk will create a sense of place and a main street for Western Mission Valley. While there is nothing like it in the submarket yet, the demand for this lifestyle is exceeding its supply in neighborhoods like Little Italy, North Park and Bankers Hill. We believe with the severe housing shortage in San Diego, a walkable community within Mission Valley will be in high demand due to its central location and access. It’s in the center of the city, within 15 minutes of everything; beach, downtown, UTC, universities.”

The San Diego planning commission is expected to review the plans in August, and the City Council will vote on the project in October.