A&B sells Mililani Shopping Center
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.