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A&B buy uses Maui sale funds

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Alexander & Baldwin used proceeds from its sale of old sugar fields on Maui to make a $42 million purchase of the lease-fee interest of the land under the Home Depot in Iwilei on Oahu, the company announced Monday.

The 9-acre parcel includes the Home Depot's 132,908-square-foot warehouse store; 15,075-square-foot garden center; and two-story, 604-vehicle parking garage, the company news release said.

A&B sold its 41,000 acres of Hawaiian Commercial & Sugar Co. land to Mahi Pono in December for $262 million. The company used another $40 million from the Maui sale to purchase warehouse buildings in Kapolei, Oahu, on Dec. 28.

"With a strong, proven tenant like Home Depot and an attractive urban-core location, this property adds to our appealing ground-lease portfolio," said Lance Parker, A&B chief real estate officer. "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 Hawaii commercial real estate and land."

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