Boston Properties Inc. and Canada Pension Plan Investment Board have formed a joint venture to develop Platform 16, a 1.1-million-square-foot class A urban office campus near Diridon Station in downtown San Jose, California.
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 February 1, 2020 at a purchase price of approximately $134.8 million.
CPPIB will have a 45% ownership interest in the Platform 16 joint venture. Boston Properties will retain the remaining 55% ownership stake and provide customary development, property management and leasing services. This agreement is the second joint venture between Boston Properties and CPPIB following the Santa Monica Business Park campus in Santa Monica, California in 2018.
Located on a 5.4-acre site, Platform 16 is adjacent to Google’s planned eight million square foot transit village and Diridon Station, the largest multi-modal transportation hub in the Bay Area consisting of Caltrain, VTA light-rail, the ACE train, and the planned BART and high-speed rail lines.
“We are pleased and honored to have Canada Pension Plan Investment Board as our partner on this exciting development, expanding the relationship between BXP and CPPIB,” commented Owen D. Thomas, CEO of Boston Properties. “We look forward to bringing this project to market and broadening our footprint on the West Coast.”
“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,” stated Aaron Fenton, Vice President, Development for Boston Properties.
This joint venture partnership between CPPIB and Boston Properties will support the development of the planned three building campus. The partners expect the buildings to feature large floorplates ranging from approximately 25,000 to 90,000 square feet, 15-foot floor-to-floor heights, 16 large outdoor terraces that give the project its name, along with multiple indoor and outdoor workspaces, and on-site amenities including a large fitness and wellness facility and conference center. Platform 16 will have immediate access to the adjacent Guadalupe River Park and various retail and restaurant amenities.
“Partnering with Boston Properties on the Platform 16 development is a great example of our real estate strategy in the United States. 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,” said Hilary Spann, Managing Director, Head of Real Estate Investments, Americas at CPPIB.
Boston Properties 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.