A&B Properties Acquires Prime Neighborhood Shopping Center in Utah
HONOLULU, Oct 27, 2010 (BUSINESS WIRE) -- A&B Properties, Inc., the real estate subsidiary of Alexander & Baldwin, Inc.(NYSE:ALEX), today announced that it has acquired Little Cottonwood Center, a 141,600 square-foot neighborhood shopping center in Sandy, Utah, for $20.5 million.
"Little Cottonwood Center is a grocery-anchored shopping center with strong national and regional tenants, ideally located in a desirable, growing suburban community of Salt Lake City," said Norbert M. Buelsing, president of A&B Properties. "The center is an attractive addition to our commercial income portfolio and we expect it to benefit from continued job and population growth in the area. A&B has owned two other commercial properties in the Salt Lake City area for several years and has been pleased with their performance."
Buelsing continued, "The purchase of Little Cottonwood Center also furthers our strategy of reinvesting Section 1031 tax-deferred proceeds from recent sales and recycling them into new assets with favorable appreciation potential."
Little Cottonwood Center is located approximately 17 miles from downtown Salt Lake City, in the city of Sandy, Utah, the state's fifth largest city. The shopping center is 97 percent occupied; national tenants include Fresh Market, McDonald's, Starbucks, Discount Tires and Texaco. The purchase price included the assumption of a $6.4 million mortgage, at a 5.5 percent interest rate.
With the acquisition of Little Cottonwood Center, A&B Properties' commercial property/investment portfolio consists of 7.7 million square feet of retail, office and industrial space located in Hawaii and seven U.S. mainland states. Additional information about A&B Properties, Inc. may be found at its web site: http://www.abprop.com.
About Alexander & Baldwin: A&B is headquartered in Honolulu, Hawaii and is engaged in ocean transportation and logistics services through its subsidiaries, Matson Navigation Company, Inc., Matson Integrated Logistics, Inc. and Matson Global Distribution Services; in real estate through A&B Properties, Inc.; and in agribusiness through Hawaiian Commercial & Sugar Company and Kauai Coffee Company, Inc. Additional information about A&B may be found at its web site: http://www.alexanderbaldwin.com.
Statements in this press release that are not historical facts are "forward-looking statements," within the meaning of the Private Securities Litigation Reform Act of 1995, that involve a number of risks and uncertainties that could cause actual results to differ materially from those contemplated by the relevant forward-looking statement.These forward-looking statements are not guarantees of future performance.This release should be read in conjunction with our Annual Report on Form 10-K and our other filings with the SEC through the date of this release, which identify important factors that could affect the forward-looking statements in this release.
SOURCE: A&B Properties, Inc.