LOS ANGELES — Hudson Pacific Properties (NYSE: HPP) and Macerich (NYSE: MAC) have formed a joint venture to redevelop Westside Pavilion, a 600,000-square-foot shopping mall located in west Los Angeles, into creative office space. The project is expected to cost between $425 and $475 million.
At completion, the development will be home to 500,000 square feet of state-of-the-art creative office space, while retaining 100,000 square feet of existing entertainment retail space.
The 12-screen Landmark Theatres, Westside Tavern restaurant and other shops primarily located on the ground floor will remain in the reconfigured space, according to reports by the Los Angeles Times. Anchor Macy’s is set to close at the end of this month, and Nordstrom left the property last year to open at Westfield Century City.
Project completion is scheduled for summer 2021. Hudson Pacific will hold a 75 percent stake in the property, and will act as managing member, day-to-day operator and developer. Macerich will hold the remaining 25 percent.
“Westside Pavilion is a perfect opportunity for us to reposition a marquee asset in a premier location,” says Victor Coleman, chairman and CEO of Hudson Pacific. “The project is poised to capture the strong demand from tenants for creative office space on the west side of Los Angeles.”
Hudson Pacific Properties is a real estate company focused on acquiring, repositioning, developing and operating office and entertainment properties in West Coast markets. The company’s stock closed at $31.62 per share on Monday, March 5, down from $34.18 one year ago.
Macerich is a real estate investment trust that focuses on the acquisition, leasing, management, development and redevelopment of regional malls throughout the U.S. The company currently owns 53 million square feet of real estate.
Macerich stock closed on Monday, March 5, at $59.16 per share, down from $62.67 last year.
— Katie Sloan