Alexander & Baldwin Entity Buys Third Sacramento Office Building; $12.4 Million for Building in Master Planned Office Park
HONOLULU--(BUSINESS WIRE)--June 14, 2006--A&B Gateway LLC, an entity related to Alexander & Baldwin, Inc. (NASDAQ:ALEX), has purchased for $12.4 million a two-story office building situated within Crown Corporate Center, a 31-acre master-planned business park, located three miles north of downtown Sacramento, Calif. The building, 2890 Gateway Oaks, contains approximately 58,700 square-feet of leasable space. The property was purchased from Fox Creek Fund LLC, a California-based investment group, and is being acquired in a Section 1031 exchange. The transaction closed today and represents A&B's third acquisition in the Sacramento area.
Tenants at the property include the University of Phoenix, IKON, GECC and JP Morgan. The Crown Corporate Center benefits from I-80 freeway visibility and is located approximately ten minutes south of the Sacramento International Airport and downtown Sacramento. The building was constructed in 1999 by BTV Crown Equities, the master developer of the 31-acre Crown Corporate Center. 2890 Gateway Oaks is part of a master-planned office park.
A&B's other holdings in Sacramento include 2450 Venture Oaks and Prospect Park Center. Both office buildings were acquired in 1998 and are 100% leased.
"A&B was attracted back to Sacramento's office market by the opportunity to invest in a quality, master-planned development, well located in the growing South Natomas district," explained Norbert M. Buelsing, executive vice president of A&B Properties, Inc. "Significant housing has been developed in the area over the past five years, which increases the desirability of Natomas as a suburban office location."
A&B's income portfolio of commercial properties in Hawaii and on the U.S. mainland currently consists of more than 5.8 million square feet of leasable retail, office and industrial space. A&B owns 90,000 acres of land in Hawaii, making it the state's fourth largest private landowner. The majority of A&B's recent acquisition and investment activity has been focused on Hawaii, where various A&B development projects are ongoing on Oahu, Maui, Kauai and the Big Island.
A&B Properties, Inc. (www.abprop.com) is the real estate subsidiary of Alexander & Baldwin, Inc., a diversified corporation headquartered in Honolulu. A&B's major lines of business are ocean transportation (Matson Navigation Company, Inc. and Matson Integrated Logistics, Inc.); real estate (A&B Properties, Inc.); and food products (Hawaiian Commercial & Sugar Company, Kauai Coffee Company, Inc.). Additional information about A&B may be found at its web site: 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. Factors that could cause actual results to differ materially from those contemplated in the statements include, without limitation, overall economic conditions, failure to satisfy the closing conditions set forth in the definitive agreement and other risks associated generally with acquisitions and developments. 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.
CONTACT: Alexander & Baldwin
Linda M. Howe, 808-525-6642
SOURCE: Alexander & Baldwin, Inc.