A&B Maui Ag Sale Proceeds Fund Land Under Home Depot, Honolulu
Alexander & Baldwin today closed on the off-market acquisition of the leased-fee interest in the land under the Home Depot warehouse store in the Iwilei submarket of Honolulu.
A&B financed the $42 million purchase with proceeds from its December 2018 sale of agricultural lands on Maui.
The property consists of a single, nine-acre parcel. Home Depot constructed a number of improvements on site, including its 132,908 square-foot warehouse store, 15,075 square-foot garden center and two story, 604-car parking garage.
This purchase represents A&B’s second step toward reinvesting proceeds from the $262 million sale of approximately 41,000 acres of agricultural farmland on Maui. A&B’s first reinvestment, a $40 million purchase of two Class A warehouse buildings in Kapolei, Oʻahu, closed on Dec. 28, 2018.
“With a strong, proven tenant like Home Depot and an attractive urban-core location, this property adds to our appealing ground lease portfolio. Ground leases are a preferred asset class for us, along with grocery-anchored retail and industrial. This transaction is another important step in the process of reinvesting all the proceeds from Maui farmland sale into Hawaiʻi commercial real estate and land,” said Lance Parker, A&B chief real estate officer.