Hudson Pacific Properties and Macerich entered into a joint venture to repurpose a majority of the struggling Westside Pavilion mall into office space. The two companies released a statement about the move Monday.
Early last month, The Real Deal first reported that Hudson Pacific was in advanced discussions to purchase the 600,000-square-foot shopping center at 10800 W. Pico Boulevard in the Westside.
At the time, there were rumblings that Hudson Pacific would repurpose the building, with Macerich staying on as partner.
Roughly 80 percent, or 500,000 square feet, will be converted to office. The firms will retain 100,000 square feet for entertainment retail space, such as restaurants and the existing movie theater.
The conversion will cost up to $475 million, according to Monday’s announcement. Hudson Pacific will cover 75 percent of that, or about $350 million. Macerich, meanwhile, retains a 25 percent stake in the project.
Construction is expected to be completed by mid-2021.
Macerich first announced plans to sell the three-story property during an earnings call in November. The mall had been suffering from low occupancy and slow sales, and was dealt a major blow when Macy’s — the mall’s anchor tenant — said it would shutter.
GPI Cos. owns the separate 220,000-square-foot property where Macy’s stood. It is unclear what role GPI will play in the repurpose.
Los Angeles-based Hudson Pacific Properties owns the expanding Sunset Gower, Sunset Las Palmas and Sunset Bronson studios in Hollywood. The REIT has a growing office portfolio, including the 300,000-square-foot Epic building.