Boston Properties and Canada Pension Plan Investment Board (CPPIB) have formed a joint venture and completed the acquisition of Santa Monica Business Park in the Ocean Park neighborhood of Santa Monica, Calif., for a purchase price of approximately $627.5 million, including $11.5 million of seller-funded leasing costs after the effective date of the purchase and sale agreement.
Santa Monica Business Park is a 47-acre office park consisting of 21 buildings totaling approximately 1.2 million net rentable square feet. Approximately 70 percent of the rentable square footage is subject to a ground lease with 80 years remaining, including renewal periods. The ground lease provides the joint venture with the right to purchase the land underlying the properties in 2028 with subsequent purchase rights every 15 years. The property is 94 percent leased.
“The Santa Monica market has demonstrated strong growth in demand and rental rates from a variety of world-class tenants and i
