A&B Makes $26.5 M Kapolei Warehouse Acquisition
Alexander & Baldwin today added another industrial asset with the completion of the off-market acquisition of Kapolei Enterprise Center, a newly constructed Class-A warehouse building in Kapolei on Oʻahu.
Construction of the 93,000 square-foot building was completed in March.
KEC features 40-foot clear heights, an ESFR sprinkler system, dock-high loading and roll-up, drive-in doors. The property was 100% pre-leased before completion, with 51% of the space leased to Best Buy and the remainder leased to Hawaiʻi Transfer Co., Ltd., a Hawaiʻi-based distribution and logistics company.
Kapolei is located 16 drive-miles from the Daniel K. Inouye International Airport and 20 drive-miles from the Port of Honolulu, served by its own deep-water port and home to the majority of the new industrial product that has been added to the market in the last decade.
Company executives say this purchase represents A&B’s next step toward reinvesting proceeds from the $262 million sale of approximately 41,000 acres of agricultural farmland on Maui.
A&B previously reinvested $40 million in two Class-A warehouse buildings in Kapolei and $42 million in a ground lease under the Home Depot store in Iwilei, Oʻahu.
“It’s rare to find the opportunity to invest in an industrial property of this quality on Oʻahu, so we are excited to add KEC to our already attractive Hawaiʻi portfolio. Industrial assets have extremely low vacancy rates and are one of our preferred asset classes, along with grocery-anchored retail and ground leases,” said Lance Parker, A&B chief real estate officer.