The Canada Pension Plan Investment Board (CPPIB) has formed a joint venture with real estate company Hudson Pacific Properties.
The CPPIB will purchase a 45% interest in 1455 Market Street from Hudson Pacific Properties for US$219.2 million ($259.2 million) before closing adjustments.
Hudson, which acquired the property in December 2010, retains a 55% ownership stake, along with general partner status, and will continue to oversee management and leasing.
The 22-storey building is located in San Francisco’s Mid-Market neighbourhood, which serves as the global headquarters for taxi services firm Uber and mobile payments company Square.
“1455 Market Street marks our first direct investment in San Francisco office real estate, one of the best-performing U.S. office markets and a key strategic market for CPPIB in that country,” says Peter Ballon, managing director, head of real estate investments, Americas, with CPPIB. “We look forward to building our relationship with Hudson, a well-aligned partner with a strong operating platform, as we expand our office portfolio on the West Coast.”
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