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The Honolulu Advertiser
Posted on: Tuesday, January 26, 2010

A&B sells Mililani Shopping Center


Advertiser Staff

Hawaii news photo - The Honolulu Advertiser

Alexander & Baldwin Inc. has sold the Mililani Shopping Center, above, to a California-based real estate investment firm for $50.3 million. In a separate transaction, A&B bought a shopping center in Colorado for $30.8 million.

Photo courtesy of Stoneridge Capital Partners

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Alexander & Baldwin Inc. has sold the Mililani Shopping Center to a California-based real estate investment company for $50.3 million, eight years after it paid $30 million for the property.

A&B sold the 180,300-square-foot retail center through its real estate subsidiary, Alexander & Baldwin Properties Inc., to Stoneridge Capital Partners of Newport Beach.

Alexander & Baldwin also announced that it bought a shopping center in Boulder, Colo., for $30.8 million in a separate transaction. The 216,400-square-foot Meadows on the Parkway Shopping Center is located about a mile from the University of Colorado.

"The sale of Mililani Shopping Center further supports A&B's real estate strategy of achieving favorable prices for properties it actively positions for disposition," said Norbert Buelsing, president of A&B Properties.

He said the transactions are being done through a so-called Section 1031 exchange, in which investors may defer capital gains taxes on one piece of property until they buy a similar property.

During A&B's eight-year ownership of Mililani Shopping Center the company was able to achieve a 39 percent increase in net rent and a 66 percent average increase in average tenant sales, while maintaining a 98 percent average occupancy, Buelsing said.

"The addition to our portfolio of Meadows a large, centrally located shopping center anchored by key national tenants, including Safeway, Michael's and Rite Aid reflects A&B's strategic objective of acquiring properties in prime markets with excellent potential for appreciation and growth," he said.