In this paper, we investigate optimal design of millimeter-wave (mmWave) multiuser line-of-sight multiple-input-multiple-output (LOS MIMO) systems using hybrid arrays of subarrays based on hybrid block diagonalization (BD) precoding and combining scheme. By introducing a general 3D geometric channel model, the optimal subarray separation products of the transmitter and receiver for maximizing sum-rate is designed in terms of two regular configurations of adjacent subarrays and interleaved subarrays for different users, respectively. We analyze the sensitivity of the optimal design parameters on performance in terms of a deviation factor, and derive expressions for the eigenvalues of the multiuser equivalent LOS MIMO channel matrix, which are also valid for non-optimal design. Simulation results show that the interleaved subarrays can support longer distance communication than the adjacent subarrays given the appropriate fixed subarray deployment.