TORONTO — The Canada Pension Plan Investment Board (CPPIB) has entered into a joint venture with Boston Properties to develop Platform 16, a 1.1-million-square-foot Class A urban office campus near Diridon Station in downtown San Jose, Calif.
Boston Properties entered into a 65-year ground lease for Platform 16 in November 2018, stated an Oct. 1 release.
As part of the lease, the firm secured the right to purchase all of the underlying land during a 12-month period commencing Feb. 1, 2020 at a purchase price of US$134.8 million.
The CPPIB will have a 45 per cent ownership interest in the Platform 16 joint venture.
Boston Properties will retain the remaining 55 per cent ownership stake and provide development, property management and leasing services.
The agreement is the second joint venture between Boston Properties and the 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.
The partners expect the campus buildings to feature large floorplates ranging from approximately 25,000 to 90,000 square feet, 15-foot floor-to-floor heights and 16 large outdoor terraces along with multiple indoor and outdoor workspaces and on-site amenities including a large fitness and wellness facility and conference centre.