Hudson Pacific Properties and Macerich, a real estate investment trust, have established a joint venture to transform Westside Pavilion, a shopping mall located in West Los Angeles, California, into office space.
Hudson Pacific will have 75% interest in the joint venture, while the remaining 25% stake will be held by Macerich.
The scope of the work will include the transformation of about 600,000ft2 pavilion into nearly 500,000ft2 of creative office space, while retaining the about 100,000 ft2 of existing entertainment retail space.
Overall project cost, including the asset value at contribution, is expected to be between $425m and $475m. Construction on the project is anticipated to be completed by mid-2021.
Hudson Pacific will act as the managing member of the joint venture and the property’s developer and day-to-day operator.
Hudson Pacific chairman and CEO Victor Coleman said: “Westside Pavilion is a perfect opportunity for us to reposition a marquee asset in a premier location—this is what we do best.
“The project is poised to capture the strong demand from tenants for creative office space on the west side of Los Angeles. We look forward to working with Macerich and to making our signature improvements to the property, which we believe will greatly benefit the surrounding community.”
The Westside Pavilion site is located in close proximity to the I-405 and I-10 freeways and the Expo Line light rail’s Westwood/Rancho Park station. It is also situated next to the residential enclave of Cheviot Hills and other neighbourhoods, making it an ideal location for office development.
Macerich chairman and CEO Art Coppola said: “Our joint venture with Hudson Pacific will enable us to maximize the value of this incredibly well-situated real estate with dynamic new uses - something Macerich has always excelled at.
“Hudson Pacific brings great expertise in the creative office space segment, and we are pleased to partner with them on this exciting, high visibility project.”