Boston Properties (BXP) expands West Coast investments with JV.

Boston Properties (BXP) announced today that it has formed a joint-venture with Canada Pension Plan Investment Board to develop a 1.1 million square foot office campus in downtown San Jose, CA.  The 5.4-acre site is located adjacent to a planned Google facility and also Diridon Station, a multi-modal transportation hub serving the Bay Area.  BXP said that it will have a 55% interest in the joint venture and retain responsibility for all development, management, and leasing services.

The development site is currently leased by BXP for a 65-year term.  In 2020, BXP has an option to purchase the underlying land for a purchase price of approximately $135 million.  The estimated total cost of the project was not disclosed.

A member of the S&P 500, Boston Properties (BXP) is one of the largest owners of Class-A office properties in the U.S. with a total market capitalization of approximately $36 billion.