A&B Properties, Inc, a real estate subsidiary of Alexander and Baldwin, Inc, has completed the off-market acquisition of both lease fee interest, which comprises 10 acres of prime commercial-zoned land in Manoa, and retail center improvements of the 41,000-square-foot, eight-building Manoa Market Place.
"These acquisitions illustrate what we do best as Hawaii real estate investors using our local market knowledge to identify and realize unique opportunities that create long-term value for shareholders and the community," said Lance Parker, A&B Properties, Inc's president. "Owning both the underlying parcel and the retail center improvements will enable the Company to implement a pro-active asset management and capital investment program that will enhance the customer experience at the center."
According to the press release of A&B Properties in PR NewsWire, Manoa Marketplace is located four miles east of downtown Honolulu, and is the only grocery-anchored center in Manoa. Formerly owned by Levy Affiliated, a California-based real estate investment firm, Manoa Marketplace is 91 percent leased and is anchored by Safeway and Long's Drugs/CVS, with other tenants such as McDonald's, several of Hawaii's Major Banks, a U.S. Post Office, local full- and quick-service restaurants, and professional and educational service providers.
"This is an excellent opportunity for the Company to expand its sizeable Hawaii retail presence into urban Honolulu, while furthering the strategic migration of the Mainland commercial portfolio to Hawaii," said Chris Benjamin, Alexander & Baldwin, Inc's president and chief executive officer. "With reported sales of over $700 per square foot, Manoa Marketplace is one of the strongest performing retail centers in Oahu, and is located in one of its most desirable neighborhoods. The acquisitions reflect our continued confidence in the Hawaii real estate market and our belief that grocery-anchored retail centers will continue to outperform other commercial asset types throughout the real estate cycle."
The acquisition, which totaled to $82.4 million, will be funded using the proceeds from the December 2015 sale of an office property in Washington, the planned sale of several of ABP's Mainland commercial properties, and other parcel sales of A&B Properties.
