The establishment of the newly thriving office market in the Marina del Rey area owes much to the Playa Vista development.
And just a few years after all the legal battles and contentious public hearings, it’s hard to imagine that the 1,097-acre residential, office and retail project almost didn’t make it.
Stroll down Pacific Promenade and residents can be seen walking their dogs, grabbing a cup of coffee and doing all the sorts of things taken for granted in a traditional, pedestrian friendly neighborhood.
“I’m envious. It’s really refreshing down there,” said Carl Muhlstein, executive vice president at Cushman & Wakefield Inc. who has sold various parcels of Playa Vista land to office developers. “It is very relaxing, they’ve got the parks. It’s really a pleasant atmosphere.”
It’s been several years since the development’s first homes opened in late 2002. The much-anticipated Shops at Concert Park retail center has been open since December 2005 and parks at the development are filled with families.
About 2,100 residential units have been completed and sold at Playa Vista, which is nestled between Marina del Rey and Westchester off of Lincoln Boulevard. Another 1,100 units are under construction and will be released to buyers over the next six to 12 months. In total, the 3,200 units comprise the first phase of residential development at Playa Vista.
The Playa Vista lifestyle includes an emphasis on “walkability.” The development, which will eventually include a total of 5,846 residential units, features over 750 acres of open space and parks and a growing retail component. Other features include a public library and a forthcoming public school. About 6,000 people call Playa Vista home.
“Everything that is built at Playa is sold,” said Steve Soboroff, president of Playa Vista Capital Co. LLC. “An inordinate number of buyers are moving from areas like Malibu, the Palisades and the Westside. They are getting big prices for their homes in those places and moving to a different sort of lifestyle.”
Lingering issues
Proponents of the Playa Vista development, built at the former Hughes Aircraft Co. site, have championed it as an urban model for Los Angeles.
But seven or eight years ago, while the project was under discussion, it was heavily attacked by opponents who contended it would bring more traffic to the already congested Westside. Environmentalists also complained about paving over some of the last remaining open space on the Westside.
But much of the opposition was undercut in 2002 when Soboroff sharply cut the size of the project, including the residential, office and retail components. He also reached a deal with the Trust for Public Land and the state that restored and preserved the Ballona Wetlands.
Still, issues loom, including continuing concern about traffic. Playa Vista has spent over $100 million in road improvements and traffic light synchronization to mitigate traffic increases around the project.
And then there’s the 2003 discovery of remains of a 200-year-old Native American cemetery at a Playa Vista construction site that still lingers. Last week, a state appeals court panel considering a lawsuit brought by opponents challenging the city’s approval of an environmental impact report on Playa Vista’s second phase asked for more information on wastewater treatment and how archaeological artifacts will be handled.
Meanwhile, though, homes at Playa Vista are selling in the $500,000 to $2 million range. And while the project counts professional athletes among its residents, there is also room for residents in search of more affordable housing.
The average price of a home at the development is $700,000, or about $500 per square foot. By comparison, the average per foot price of a home in Santa Monica nears $1,000 and reaches $1,900 in Malibu.
“I think Playa Vista is a big success,” said David Nagel, president of Los Angeles-based Decron Properties Corp. Decron is building a large rental project near Playa Vista called Playa del Oro. “Their for-sale housing is predominantly sold out and rental housing is very well leased.”
The developers have made a commitment to make the project an urban model. Playa Vista staffers drive electric GEM vehicles, and in April there was a grand opening for a 7-acre sports park that includes a wheelchair accessible playground, various sports courts and a soccer field replete with synthetic grass and recycled “dirt” that requires no irrigation.
And the retail has finally been delivered. The first residents who moved into homes at the development had to wait years for the Shops at Concert Park to open. A Coffee Bean & Tea Leaf shop opened there in December 2005, followed by a few other shops, including a Bank of America, a dry cleaners and a restaurant called Piknic. There is a total of 11,844 square feet of retail space at the shopping area.
Soboroff said that 14 of the initial 15 building companies that constructed residential units at Playa Vista have opted to participate in the next phase of development.
