The University of California Los Angeles has purchased a 687,000-square-foot property in Westwood for $700 million.
The university plans to build a new research park there with two multidisciplinary research centers: the Center for Quantum Science and Engineering and the California Institute for Immunology and Immunotherapy at UCLA. The purchase was partially funded by a $500 million investment promised by the state of California, with $200 million already allotted.
“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,” Gov. Gavin Newsom said in a statement. “Leveraging the next waves of technology and science … the UCLA Research Park will cement California’s global economic, scientific and technological dominance into the 22nd century, and beyond.”
The property was previously home to the Westside Pavilion shopping mall. The mall first opened in 1985 and began to decline after one of its largest stores, Nordstrom Inc., moved to the competing Westfield Century City shopping center in 2017. The property’s previous owner, Santa Monica-based The Macerich Co., announced a joint venture with Brentwood-based Hudson Pacific Properties Inc. in 2019 to renovate and refresh the space.
Prior to UCLA’s purchase, Hudson Pacific – which held a 75% stake in the property – was working to redevelop the space into a new office complex for Google LLC. Google had signed a 14-year lease for the space, which would go through 2036, but never actually occupied the property. A source familiar with the matter said that Google’s lease was officially terminated upon the closure of UCLA’s deal.
UCLA Chancellor Gene Block said in a statement that the acquisition’s success was empowered by financial support from the state, and that the research park will be “transformative” for the university.
“We will remake the empty former mall into a state-of-the-art hub of research and innovation that will bring scholars from different higher education institutions, corporate partners, government agencies and startups together to explore new areas of inquiry and achieve breakthroughs that will serve our global society,” Block said.
The research park includes a 12-screen multiplex that was previously a Landmark Theater Co. location. UCLA said that the theater space may be converted into lecture halls or performance spaces.
“We recognize the former Westside Pavilion’s place in Los Angeles’ history and are grateful for the chance to turn the empty former mall into the future home of discoveries that will change the world,” Block said.
The deal also benefits Hudson Pacific, which used net profits from the sale to pay off outstanding debt on a previous credit facility, the company said. Hudson Pacific Chief Executive Victor Coleman said that the company now has no debt maturity until the end of next year, and that the sale “significantly bolsters” its balance sheet.
