CPPIB will pay US$219.2 million to invest in the 22-storey tower at 1455 Market Street, which is the retirment fund manager's first direct foray into San Francisco office real estate.
Hudson Pacific Properties, which currently owns the building, will retain a 55 per cent stake and will continue to be responsible for managing and leasing the property.
The 1,025,833-square-foot property fronts an entire block along 11th Street, in San Francisco's Mid-Market neighbourhood, and once served as a data collection centre for Bank of America.
The building's ground floor, which houses retail, will be expanded this year to target high-end retail and restaurant users.
Hudson says it may use the proceeds from the deal to help fund its US$3.5 billion deal to buya portfolio of properties from Blackstone’s Real Estate Funds.
"A joint venture with CPPIB unlocks a significant portion of the value created for shareholders to date, and lays a strong foundation for our firms to explore additional investment opportunities together," Victor Coleman, Hudson's chairman and CEO, said in a statement.
Peter Ballon, the head of CPPIB's American real estate investments division, said "we look forward to building our relationship with Hudson . . . as we expand our office portfolio on the West Coast."
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