Hudson Pacific Properties Inc. and Macerich Co. formed a joint venture to redevelop the Westside Pavilion in Los Angeles into creative office space in a project that is estimated to cost between $425 million and $475 million.
Hudson Pacific was previously reported to be in talks to buy the mall from Macerich.
The roughly 600,000-square-foot property will be converted to 500,000 square feet of creative office space and the roughly 100,000 square feet of existing entertainment retail space will be retained.
West Coast-focused office and entertainment property company Hudson Pacific will have a 75% stake in the joint venture and mall landlord Macerich will hold a 25% interest. Hudson Pacific will be the managing member of the partnership as well as the day-to-day operator and developer. Each company will contribute their pro rata share of the project's estimated costs.
Macerich CEO Art Coppola had discussed plans to sell the mall in a November 2017 earnings call and had said several buyers expressed interest in rezoning and redeveloping the site.
