HONOLULU, Jan 25, 2010 (BUSINESS WIRE) -- A&B Properties, Inc., the real estate subsidiary of Alexander & Baldwin, Inc.(NYSE:ALEX) ("Company"), announced today that it has completed the sale of the Mililani Shopping Center, a 180,300 square-foot retail center located in Central Oahu, for $50.3 million. The Company also announced that in a separate transaction, it acquired the Meadows on the Parkway Shopping Center ("Meadows"), a 216,400 square-foot retail center in Boulder, Colorado, for $30.8 million.
"The sale of Mililani Shopping Center further supports A&B's real estate strategy of achieving favorable pricing for properties it actively positions for disposition, while the acquisition of Meadows achieves the Company's objective of reinvesting proceeds from prior sales in quality, commercial properties with favorable long-term growth prospects, using tax-effective 1031 exchanges," said Norbert M. Buelsing, president of A&B Properties. "During our eight-year ownership of Mililani, we focused on marketing programs to increase customer traffic and invested in facilities upgrades to improve the property's value. These initiatives resulted in a 39 percent increase in net rent and a 66 percent increase in average tenant sales, while maintaining a 98 percent average occupancy at the center."
Buelsing continued, "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."
Mililani Shopping Center is located in the master-planned community of Mililani in Central Oahu, and was originally constructed in 1976. The center is anchored by Foodland Supermarket, Ross Dress for Less, 24-Hour Fitness, and a diverse tenant base of food, retail and professional services outlets.
Meadows is located in the City of Boulder, one mile from the University of Colorado, at the intersection of Baseline Road and Foothills Parkway. The eight-building center, originally constructed in 1989, features seven retail-designated buildings with 179,800 square feet of space, and one office building with 36,600 square feet of office space. The center has a diverse base of national and local tenants, and is approximately 83 percent occupied.
With the disposition of Mililani and acquisition of Meadows, A&B Properties' commercial property/investment portfolio consists of 8.3 million square feet of retail, office and industrial space located in Hawaii and eight 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.