Alexander & Baldwin Completes Migration to Hawai‘i
Alexander & Baldwin announced that it has completed the strategic migration of its commercial real estate portfolio from the US mainland to Hawaiʻi with the sale of its final mainland commercial asset, Sparks Business Center in Sparks, Nevada, which closed on Friday.
Since 2012, A&B has invested nearly $1.8 billion in Hawaiʻi, including approximately $600 million of commercial real estate capital from sales of mainland assets. During this time A&B also contributed more than $5 million to nonprofit and community organizations in Hawaiʻi.
“The last six years have been the most active period of acquisitions in the Company’s history, with $1.8 billion invested in Hawaiʻi. The sale of Sparks Business Center completes our strategy of concentrating all of our business activities in Hawaiʻi, the market we know best and where we are best able to manage and create value from our properties,” said Chris Benjamin, A&B president and CEO.
“Over the course of executing the strategy, we significantly improved the quality of our commercial portfolio and have built the state’s largest portfolio of neighborhood and community centers. The February purchase of Laulani Village in Ewa Beach, Hokulei Village in Līhue and Puʻunēnē Shopping Center in Kahului from Terramar cemented that position,” said Benjamin.
Proceeds from the Sparks sale complete the funding for the $254 million Terramar acquisition.
A&B financed the acquisition with $192 million of 1031 exchange proceeds from the sales of seven mainland commercial real estate properties (Concorde Commerce Center, Deer Valley Financial Center, Midstate 99 Distribution Center, Sparks Business Center, Preston Park, Royal MacArthur Center and Little Cottonwood Shopping Center) and four Hawaiʻi properties, and the assumption of a $62 million mortgage on Laulani Village.