A&B buys Pu‘unene Shopping Center in 3-property deal
The Maui News
Alexander & Baldwin Inc. has purchased the Pu’unene Shopping Center as part of a $254 million, three-property deal with California-based Terramar Retail Centers, A&B announced Monday.
The other retail centers are Laulani and Hokulei village shopping centers. They are located in Ewa Beach, Oahu, and Lihue, Kauai, respectively.
The 113,000-square-foot Pu’unene center was completed in 2017. Target is the anchor tenant, and other existing and signed tenants are Ulta Beauty, Starbucks, Petco, Maui Tacos, Massage Envy, Planet Fitness and Verizon.
The deal includes A&B’s assumption of $62 million in mortgage debt. The transaction closed Friday.
“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,” said Chris Benjamin, A&B president and chief executive officer. “This reinvestment in our local communities has been aided by our conversion to a real estate investment trust last year, and we are pleased to bring these important centers under local ownership.”
A&B real estate officer Lance Parker said: “All three of these centers are high-quality, newly constructed projects that provide convenience and value to their surrounding communities, much like the other centers in our Hawaii portfolio. We are excited to work with our new tenants to help them succeed in serving their customers and neighbors, and we look forward to having these strategic assets in our portfolio attract new tenants to the islands.”
The three-property deal is tied to A&B’s disposition of seven Mainland properties, which began in the fourth quarter of 2017 and is expected to be completed by mid-2018, the company said.
Since 2012, A&B has invested nearly $1.8 billion in Hawaii, including $400 million in commercial real estate assets from the Mainland that migrated back to the islands.
A&B is Hawaii’s fourth largest private landowner with approximately 87,000 acres in the islands. The company is a fully integrated real estate investment trust and owns, operates and manages 4.1 million square feet of retail, industrial and office space, primarily in Hawaii, and on the U.S. Mainland.
A&B also has 36,000 acres of former sugar cane land on Maui that the company is working to transition to diversified agriculture. It’s also the state’s largest construction materials company and paving contractor.