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1/04/24
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By Allen Wolfsheimer
The Regents of the University of California acquired One Westside and Westside Two in Los Angeles from Hudson Pacific Properties and Macerich in a $700 mil transaction. Hudson Pacific held a 75% interest and Macerich a 25% interest in the joint venture that owned the assets, which totals approximately 687k sf of space.
The former Westside Pavilion regional shopping mall property is located at 10800, 10830 and 10850 West Pico Blvd, between Overland Ave and Kelton Ave. It had been mostly leased by Google from 2019 through 2033 for use as an office campus. However, the tech giant has been cutting back on its office space since the pandemic and worked with the other parties to enable this sale.
The university will transform the property into the UCLA Research Park — bringing together scholars and industry experts from around the world to create a nexus for discovery and innovation that will benefit Southern California and beyond. The property, located two miles south of UCLA’s Westwood campus, will initially host two multidisciplinary research centers: the California Institute for Immunology and Immunotherapy at UCLA and the UCLA Center for Quantum Science and Engineering.
The new UCLA Research Park is made possible in part by an intended $500 mil investment, with $200 mil already allocated, from the state of California to establish and fund the immunology and immunotherapy institute at UCLA. The institute is also supported by a group of founding donors from the biotechnology, academic, entrepreneurship and philanthropic communities led by Meyer Luskin, Dr. Gary Michelson, Dr. Eric Esrailian, Dr. Arie Belldegrun, Sean Parker and Michael Milken.
“California is the epicenter of global innovation — from the creation of the internet to the dominance of artificial intelligence, humanity’s future happens here first,” said California Gov. Gavin Newsom. “Leveraging the next waves of technology and science — quantum computing and the immense potential of immunology — the UCLA Research Park will cement California’s global economic, scientific and technological dominance into the 22nd century, and beyond.”
Hudson Pacific used net proceeds from the sale to repay amounts outstanding on its unsecured revolving credit facility. This transaction addresses the company’s debt maturities until December 2025, and further strengthens the company’s compliance with its unsecured revolving credit facility covenants as recently amended. Further, the company’s share of net debt to the company’s share of undepreciated book value as of September 30, 2023 proforma for all announced asset sales improved to 35% from 39%.
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