Placing a large stake in the Los Angeles office market, Boston Properties has entered into an agreement to acquire the 1.2M SF Santa Monica Business Park from Blackstone for $616M.
The Boston-based real estate investment trust highlighted the tentative deal in the company’s most recent quarterly Securities and Exchange Commission filings.
The 47-acre, 21-building campus in the Ocean Park neighborhood of Santa Monica is 94% leased to tenants including Activision Blizzard and Snap Inc.
Transpacific Development Co., which built the office campus, still holds a 70% ground lease on the property with 80 years remaining, but Boston Properties will have a right to purchase the fee starting in 2028.
If the deal goes through with Blackstone, it will be the highest-priced office sale in Santa Monica’s history, according to real estate data firm CoStar.
A Boston Property official had not responded to questions as of press time.
Blackstone listed the Santa Monica Business Park for sale last year as part of its strategy to sell off the remaining assets it acquired when the company purchased Equity Office Properties Trust more than a decade ago.
CoStar reports Boston Properties beat out several major players for the office campus, including Douglas Emmett, Hudson Pacific Properties and Worthe Real Estate Group.
This would be the second office campus for Boston Properties in the Los Angeles market. It owns 50% of the 1.18M SF six-building Colorado Center in Santa Monica.
