Playa Vista Housing to Break Ground in ’98

The new owners of the Playa Vista real estate development plan on breaking ground early next year on the first phase of 3,200 apartments and condominiums, people familiar with the project said. Real estate affiliates of Goldman Sachs & Co. and Morgan Stanley & Co., which took control of the property this week, will develop the housing on their own or hire an existing home-building company to handle all or parts of the residential project. Playa Vista will also include more than 3.5 million square feet of commercial space and, if negotiations are successful, a studio and headquarters for DreamWorks SKG. The first units of housing are expected to be completed in 1999.