A Hawaii public company with major financial power and development experience is going to be the new dominant owner of commercial property in Kailua, though the firm said it won’t be moving fast to redevelop what is still largely a bedroom community.

Alexander  &  Baldwin Inc. is buying nearly all the Oahu real estate owned by Kaneohe Ranch Co. and the Harold K.L. Castle Foundation — roughly 650 acres — in a $373 million deal announced Wednesday.

The sale is scheduled to close by the end of the year and will provide $260 million to Kaneohe Ranch and $113 million to the charitable foundation.

Most of the land in the sale, 585 acres, is zoned for preservation and agriculture and has little value. Some commercial property is in urban Honolulu and Kaneohe. The primary value of the portfolio is 36 acres in Kailua town.

A&B  said it is acquiring 70 percent of the commercial-zoned land and 90 percent of the retail property in Kailua.

"It is a portfolio that cannot be replicated," Stan Kuriyama, A&B chairman and CEO, said on a conference call with stock market analysts Wednesday. "An acquisition of this scale and quality rarely occurs in Hawaii."

As the dominant landlord for Kailua businesses, A&B will be in the position to benefit from rising rents and redevelopment in an area becoming more of a regional retail destination and tourist magnet.

A&B  said it sees redevelopment opportunity for Kailua’s business district in the long term, and that it plans to take the time to meet with community members to find out what they want and need.

"Kailua is a thriving and vibrant community, and we intend to partner with the community in maintaining the livability, desirability and beauty of Kailua town," Chris Benjamin, A&B president and chief operating officer, said in a statement. "We take a long-term perspective on our community development efforts and strive to work closely with communities to meet their changing needs."

A&B’s stated approach mirrors a similar one taken by Kaneohe Ranch in a major redevelopment effort for parts of downtown Kailua that included establishing a Whole Foods Market that opened last year and a Target store slated to open late next year. Those changes were welcomed by many Kailua residents, though others opposed bringing new national retailers into a community that grew up as a sleepy beach town.

Some residents are wary of a new round of development by a public company without the historical ties to Kailua that Kaneohe Ranch had as a family business that turned ranch and crop land into a residential community.

Donna Wong, a Kailua Neighborhood Board member, said that while she hopes there will be no big changes in Kailua town, she doesn’t want to judge A&B  because it hasn’t yet met with residents.

Edward Lewis, a 32-year Kailua resident, welcomes more improvements and new retailers to the town area. "I’m not against smartening up the town,"  he said. "I  think it’s a good thing."

Mitch D’Olier, Kaneohe Ranch president and CEO who is also president of the foundation, said in a statement that A&B  will be good stewards of the property, its businesses and tenants from what he knows of the company’s "careful and sensitive"  approach.

"I don’t believe we could have found a better buyer than Alexander & Baldwin," he said. "A&B is such a respected kamaaina business institution with a similar history to that of the Castle family. They both grew from island roots with a strong understanding of island culture and a true, long-term commitment to improving Hawaii."

A&B said it will look for redevelopment opportunities that maintain the community’s character. The company also is looking to capitalize on what it said is a community that is underserved by retail  while at the same time becoming more of a regional shopping destination with new retailers such as Whole Foods.

Kailua has 13 square feet of retail store space per resident, about half the national average of 24 square feet, A&B  said.

The company also noted that Kailua retailers average about $700 per square foot of store space, double the average on Oahu or for national regional malls.

A&B  said it expects to increase its commercial property rent revenue in Kailua by improving the mix of tenants, renovating existing buildings and redeveloping property.

A&B  also expects gains as rental rates on ground leases reset based on higher land values. The company said 45 percent of ground leases in the portfolio will reset rents in the next three or four years.

The deal furthers A&B’s strategy to acquire more Hawaii commercial real estate producing rental income from tenants after spinning off former subsidiary Matson Navigation Co. last year. A&B  has been selling commercial real estate on the mainland to finance Hawaii acquisitions that include Pearl Highlands Center and Napili Plaza in Lahaina.

A&B plans to finance the Kaneohe Ranch and Castle Foundation land purchase mostly by selling mainland commercial properties, many of which are already under contract.

Kaneohe Ranch and the foundation marketed their real estate portfolios  through a broker earlier this year after an unsolicited purchase inquiry. D’Olier said more than 10 purchase offers were received.

One portion of the ranch portfolio, a collection of property on the mainland valued at $160 million, is not part of the sale to A&B.

D’Olier said Kaneohe Ranch will undergo some restructuring but continue to manage the mainland real estate and some Oahu property, including its head  quarters at Castle Junction. D’Olier said restructuring could involve some employees staying with Kaneohe Ranch and some joining A&B.

Proceeds from the sale for Kaneohe Ranch will be mainly distributed to descendants of Harold Castle, who converted what was largely ranch land into a residential community.

D’Olier is expected to receive an estimated $13.2 million from the sale, according to a summary of the transaction provided to Castle family members. D’Olier said the figure is not accurate but would not provide another. Other company employees would share $1.8 million, the summary said.

Proceeds to the foundation will enhance its endowment and ability to award grants benefiting education, marine ecosystems and other causes for Windward Oahu communities.