Riverwalk developer secures $380M, resumes construction on Mission Valley project

San Diego's Mission Valley is buzzing again with the resumption of construction on the Riverwalk San Diego project. Houston-based Hines, leading the charge with equity partner Affinius Capital, has locked in a $380 million financing package to kick off the first phase after a market-driven pause. This 200-acre development, set to replace the former Riverwalk Golf Club, promises a blend of housing, retail, offices, and green spaces. At Cali Dream Construction, we follow these large-scale builds closely—they're reshaping our local landscape one phase at a time. Here's a detailed look at the latest developments, straight from the project's evolution.

Project Background: From Golf Course to Urban Oasis

Riverwalk San Diego has been in the works since 2017, when Hines teamed up with the longtime property owners, the Levi-Cushman family, to reimagine the 195-acre site at 1150 Fashion Valley Road. The San Diego City Council approved the plan in 2020, envisioning a $4 billion mixed-use neighborhood along the San Diego River Pathway, just west of Fashion Valley Mall and bisected by the trolley line.

Initial groundbreaking happened in September 2022 on the site's shuttered northern nine-hole golf course, focusing on infrastructure like utilities, foundations, and Friars Road upgrades costing $90 million. But by early 2024, high interest rates, debt costs, and market volatility led to a construction halt on the main residential components. Hines emphasized the pause was temporary, with infrastructure commitments already met, and reaffirmed their dedication to delivering the project.

Fast-forward to October 2025: With financing in hand, crews broke ground anew on October 28, signaling a strong rebound for the development.

The $380M Financing Package: Fueling Phase One

Securing capital in today's real estate climate isn't for the faint of heart, and Riverwalk's deal reflects that grit. The total $380 million construction financing breaks down as follows:

• Senior Loan: $278 million from Bank OZK, providing the bulk of the debt for core construction.
• Mezzanine Loan: $102 million originated by Related Fund Management through its Related Real Estate Debt Fund IV, layering in flexible equity-like support.

Aram Zakian, Managing Director of Originations at Bank OZK, highlighted the project's solid fundamentals in a statement: "This financing underscores our confidence in the project's strong fundamentals and long-term value." Ray Lawler, Hines' Head of Americas, added a forward-looking note: "Across the country, we’re seeing a clear shift—the market has reset, and the next cycle is underway. Riverwalk is a powerful example of that conviction."

This funding greenlights the erection of residential and retail structures, putting the project back on track after the hiatus.

Phase One Scope: 721 Units and Community Anchors

The resumed work targets the first phase, dialed back from an original plan of 930 units across five buildings to a more streamlined 721 units in four structures. Designed by Gensler, this segment emphasizes walkability and integration with the surrounding valley.

Key elements include:

• Residential: 721 multifamily apartments and townhomes, blending market-rate and future income-restricted options.
• Retail: 75,000 square feet of grocery-anchored shops for everyday needs.
• Green Space: A central village green to foster community gatherings.
• Timeline: First units online in 2028, with full phase completion by spring 2029.

This phase represents about 17% of the overall project footprint, laying the groundwork for phased expansion.

Affordable Housing and Transit Boosts: Building Inclusivity

Riverwalk isn't just about upscale living—affordability and connectivity are core to its blueprint. As part of a 2020 city agreement, Hines must deliver 430 income-restricted units at or below 65% of the area median income across the project.

• The Becker Project: A 190-unit affordable complex, co-developed with Wakeland Housing and Development Corporation, kicked off in July 2025 with separate $140 million funding. It's already advancing, separate from the main phase financing.
• New Trolley Station: Construction on a Green Line stop for the San Diego Metropolitan Transit System has been fast-tracked via a $41.1 million Affordable Housing and Sustainable Communities grant, enhancing access without a car.

San Diego Mayor Todd Gloria noted the city's role: "I’m proud the City could be a partner in helping this ambitious project navigate challenging conditions."

Full Build-Out Vision: A 2035 Neighborhood Horizon

When complete around 2035, Riverwalk will span 200 acres with a comprehensive mix:

• Housing: 4,300 units total (10% income-restricted).
• Retail: 152,000 square feet for shops and services.
• Office: 1 million square feet of flexible workspaces.
• Open Space: 110 acres of parks, trails, bikeways, and pedestrian paths along the San Diego River—up from prior plans for more contiguous green areas.
• Infrastructure: Flood upgrades along Fashion Valley Road and habitat restoration for the river ecosystem.

The design prioritizes safety, sustainability, and reduced traffic impacts, with a downtown-style main street threading through the trolley-bisected site.

Market Context: San Diego's Multifamily Momentum

Riverwalk's revival mirrors a broader uptick in San Diego's housing pipeline. As of October 2025, Yardi Matrix reports 66 multifamily projects underway citywide, poised to add 12,243 units. Year-to-date groundbreakings include 17 developments totaling 2,983 apartments, signaling developer confidence amid stabilizing rates.

For comparison, nearby efforts like Murfey Co.'s 149-unit Stella Apartments—backed by a $46.5 million loan and eyeing Q2 2027 delivery—highlight the region's focus on mid-scale infill. Projects like Riverwalk, with their mixed-use scale, address housing shortages while weaving in transit and green perks.

Key Partners Driving the Project Forward

A collaborative lineup powers Riverwalk's progress:

• Developer: Hines (lead), with Affinius Capital as equity partner.
• Land Owners: Levi-Cushman family, stewards of the site for over a century.
• Financiers: Bank OZK, Related Fund Management, Heitman.
• Affordable Housing Ally: Wakeland Housing.
• Architect: Gensler.
• Public Partners: City of San Diego, San Diego Metropolitan Transit System, and state grant programs.

For visuals and timelines, check the official site at riverwalksd.com or Hines' portfolio at hines.com/properties/riverwalk-san-diego.

At Cali Dream Construction, we appreciate how mega-projects like Riverwalk underscore the value of resilient planning in San Diego's dynamic market—because sometimes, hitting pause is just the setup for a stronger swing. Whether you're a homeowner pondering an addition or a business scouting commercial space, these valley evolutions open doors. Head to calidreamconstruction.com/services for objective guidance on your next build, and keep an eye out for more local spotlights.