78
COURTESY ALEXANDER & BALDWIN
Laulani Village in Ewa was one of three shopping centers recently purchased by Alexander & Baldwin.
Hawaii’s second-largest retail property owner just got bigger.
Alexander & Baldwin Inc. announced today that it bought three shopping centers on different islands for $254 million in continuation of a strategy to accumulate retail property throughout the state while it sells mainland real estate holdings.
The three centers are Laulani Village on Oahu, Pu‘unene Shopping Center on Maui and Hokulei Village on Kauai.
Honolulu-based A&B bought the centers from California-based Terramar Retail Centers LLC in a deal that was completed Friday and included the assumption of $62 million in mortgage debt.
A&B said the 175,000-square-foot Laulani Village in Ewa Beach is 95 percent leased with tenants that include Safeway, City Mill, Ross Stores, Petco, Buffalo Wild Wings and Teddy’s Bigger Burgers.
Pu‘unene Center in Kahului was built last year with 113,000 square feet of space occupied by Target, Petco and a Planet Fitness club slated to open next month. Other tenants are leasing space.
Hokulei Village in Lihue is 103,000 square feet and 97 percent leased by tenants including Safeway, Petco and American Savings Bank.
A&B is using proceeds from sales of commercial properties on the mainland to pay for the three centers. The company has been doing similar deals — selling mainland real estate and buying retail property in Hawaii —for the last several years.
“The acquisition of these three centers enables us to complete the strategic migration of our commercial real estate portfolio from the U.S. mainland back to Hawaii,” Chris Benjamin, A&B president and CEO, said in a statement.
Since 2012, A&B has sold $400 million of mainland property and reinvested proceeds in Hawaii retail centers including Manoa Marketplace, Pearl Highlands Center and Waianae Mall.
Other retail properties owned by A&B include Aikahi Park Shopping Center, Kaneohe Bay Shopping Center, Kunia Shopping Center, Waipio Shopping Center, Kahului Shopping Center, Lahaina Square Shopping Center, Napili Plaza, Lanihau Marketplace and the Shops at Kukuiula.
A&B also owns 90 percent of the retail buildings in Kailua and is the state’s fourth-largest private landowner with 87,000 acres of mostly farmland mainly on Maui and Kauai.
The company, which originated as a sugar cane plantation operator in 1870, last year became a real estate investment trust that must convey at least 90 percent of profits to shareholders.
By participating in online discussions you acknowledge that you have agreed to the Terms of Service. An insightful discussion of ideas and viewpoints is encouraged, but comments must be civil and in good taste, with no personal attacks. If your comments are inappropriate, you may be banned from posting. Report comments if you believe they do not follow our guidelines.
Having trouble with comments? Learn more here.