Alexander & Baldwin Inc. announced that it bought three shopping centers on different islands for US $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.
A&B said the 175,000-square-foot (16,257-sq. meter) 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 (10,497 sq. meters) 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 (9,568 sq. meters) 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 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.
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.