Boston Properties and Canada Pension Plan Investment Board (CPPIB) have expanded their relationship with a new partnership to develop a 1.1m sqft urban office campus near Diridon Station in downtown San Jose, California.
CPPIB will have a 45% ownership interest in the Platform 16 joint venture and Boston Properties will retain the remaining 55% ownership stake and provide customary development, property management and leasing services.
The companies said the partnership intends to develop a three-building campus on the 5.4-acre Platform 16 site adjacent to Google’s planned 8m sqft transit village and Diridon Station.
Boston Properties entered into a 65-year ground lease for Platform 16 in November 2018.
As part of that ground lease, the company secured the right to purchase all of the underlying land during a 12-month period commencing 1 February 2020 for $134.8m (€123.6m).
Boston Properties said it has secured approvals and entitlements for the development of Platform 16, completed design plans and begun to clear the site.
Construction could commence in the next six months, depending on market and other conditions, it said.
The latest deal is the second joint venture between Boston Properties and CPPIB. The companies first partnered in 2018 to buy a 47-acre office park in California for around $627.5m.
Owen D Thomas, CEO of Boston Properties, said: “We are pleased and honoured to have Canada Pension Plan Investment Board as our partner on this exciting development, expanding the relationship between BXP and CPPIB.
“We look forward to bringing this project to market and broadening our footprint on the West Coast.”
Aaron Fenton, vice president, development for Boston Properties, said: “Platform 16 is ideally located in one of the largest technology hubs in the country.
”With easy access to public transportation, as well as local housing, culture, food and entertainment, Platform 16 will help companies attract and retain the talent they need to support their growth.”
Hilary Spann, managing director, head of real estate investments, Americas at CPPIB, said: “Partnering with Boston Properties on the Platform 16 development is a great example of our real estate strategy in the US.
“We are very pleased to further our relationship with a best-in-class owner and operator and we look forward to expanding our office portfolio in the dynamic Bay Area.”