Alexander & Baldwin Inc. is selling the land below the Don Quijote Co. discount store near Ala Moana Center to the Japan-based retailer.

Alexander & Baldwin, which entered into a binding contract for the 4-acre Kaheka Street parcel, said it expects to close the transaction during the third quarter. The price was not disclosed.

"We didn't start off the year anticipating that this property would be sold," A&B Properties CEO Stan Kuriyama told analysts on a conference call yesterday.

"Given the terms of the sale, it's a great deal for the company and shareholders. ..."

Alexander & Baldwin declined to provide further details due to a confidentiality clause. A&B Properties purchased the land in February 2002 from CEC Hawaii Inc. for $19.3 million.

At the time, the tenant was Daiei Inc. which sold the 105,000-square-foot store and three other O'ahu locations in February 2006 to Don Quijote, which was entering the Hawai'i market. The retailer could not be reached immediately for comment on the land purchase.

Alexander & Baldwin did not mention the buyer by name but said several times during the conference call that the buyer was the tenant, according to a transcript.

Kuriyama told analysts on the call that the company had not planned to sell the property until it received an attractive, unsolicited bid.

The company said the proceeds from the sale will boost real estate earnings later this year.

Reach Rick Daysog at rdaysog@honoluluadvertiser.com.