Macerich and Hudson Pacific Properties are still full steam ahead on the Westside Pavilion.
The developers valued the struggling Westside Pavilion mall, acquired earlier this year, at $190 million, Macerich announced during its first quarter earnings report Wednesday.
The companies announced their joint venture in March, outlining plans for the redevelopment of the Westside shopping center into an office park. Together, the companies will convert 80 percent of the 600,000-square-foot mall, or 500,000 square feet, into offices, while retaining the existing movie theater and restaurant space.
The conversion will cost up to $475 million. 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 2021.
While advancing on some of its newer projects, Santa Monica-based Macerich is also undergoing a turnover in leadership.
Late last month, the company announced that Art Coppola would step down as chairman and chief executive of the real estate investment trust after a quarter-century tenure. The moves will be effective at the end of the year.
The shakeup comes amid board-level activity from activist investors. Starboard Value, a top investor in Macerich, nominated a majority slate of directors to the company’s board, Reuters reported. Third Point also disclosed a stake in the company in November.