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Boston Properties increases purchase price on Santa Monica Business Park

The REIT paid $628M for the 47-acre property, and has partnered with a Canadian pension fund on the ground lease

Santa Monica Business Park
Santa Monica Business Park

Boston Properties announced new details about its acquisition of the 1.2 million-square-foot Santa Monica Business Park in Santa Monica.

The Boston-based real estate investment trust said is has partnered with the Canada Pension Plan Investment Board on the ground lease purchase, and has also updated the acquisition price from $616 million to $627.5 million.

That amount factors in seller-funded leasing costs. The Real Deal reported in April that Boston Properties had purchased the business park from Blackstone Group.

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The deal closed Monday.

The Canadian pension fund is investing $147.4 million for a 45 percent ownership in the 47-acre park at 2850-3420 Ocean Park Boulevard, according to a press release. The joint venture also secured $300 million in financing for the purchase. The ground lease gives the joint venture a right to purchase the land there in a decade.

Blackstone listed the complex in June 2017, six months after Snap Inc. agreed to rent 400,000 square feet there. The complex includes 21 buildings.

Boston Properties is one of the largest landlords in the Northeast U.S., but only entered the Los Angeles market in 2016, when it purchased the equally Colorado Center in Santa Monica, also from Blackstone. Boston Properties now claims it controls 24 percent of the Class A office market in Santa Monica with its latest buy.

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