CPPIB To Buy 45% Stake In 1455 Market Street From Hudson Pacific For $219.2 Mln

(RTTNews) - Canada Pension Plan Investment Board or "CPPIB" and Hudson Pacific Properties, Inc. (HPP) announced that they have formed a joint venture through which CPPIB will purchase a 45% interest in 1455 Market Street from Hudson for US$219.2 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.

1455 Market Street is a 1,025,833-square-foot, 22-storey, Class-A office building that fronts an entire block along 11th Street in San Francisco's thriving Mid-Market neighbourhood.

Hudson said it intends to use joint-venture proceeds pursuant to a like-kind exchange under the Internal Revenue Code Section 1031, which could include assets to be purchased from Blackstone Real Estate Partners V and VI as part of the Equity Office Properties' San Francisco Peninsula and Silicon Valley portfolio.

The property, formerly a critical data centre for Bank of America, is a singular 1976 concrete building with a nine-storey podium topped by a 14-storey tower. 1455 Market Street now serves as the global headquarters for Uber and Square, both of which utilize the podium's 90,000-square-foot floorplates, as well as the tower, which offers sweeping views of the surrounding areas. A long-planned repositioning and expansion of the ground-floor retail to target high-end retail and restaurant users will commence in early 2015.