A&B Properties Sells San Antonio, Texas Shopping Center; Acquires Office Building Complex in Everett, Washington
HONOLULU, Jun 08, 2011 (BUSINESS WIRE) -- A&B Properties, Inc., the real estate subsidiary of Alexander & Baldwin, Inc.(NYSE:ALEX), today announced the sale of the Arbor Park Shopping Center, a 139,500 square-foot retail center in San Antonio, Texas, for $22.5 million. The Company also announced that, in a separate transaction, it has acquired the Union Bank Office complex in Everett, Washington, an 84,100 square-foot, two-building office facility, for $10.9 million.
A&B purchased the Arbor Park Shopping Center for $16 million in 1998, upon completion of its construction. The center is located in north-central San Antonio and is anchored by Ross Dress for Less, Office Max, Sun Harvest Farms and Michaels Store.
"A&B's active role in the management of Arbor Park resulted in an average occupancy of 98 percent during its 13 years of ownership. Strong buyer demand for quality retail assets allowed A&B to achieve a favorable sale price, despite the nearby development of numerous competing retail properties," said Norbert M. Buelsing, president of A&B Properties, Inc. "This sale provides us the opportunity to realize the increase in the property's value and redeploy the sales proceeds, on a tax-advantaged basis, into other commercial real estate investments having more favorable growth prospects."
"Acquisition of the Union Bank Office complex continues our strategy of effectively using 1031 exchanges to improve the quality of our income portfolio. The property, which is 100 percent leased to Union Bank of San Francisco, is being acquired with proceeds from recent sales of two smaller retail assets. The two buildings, which comprise the facility, were constructed in 1993 and 2008, and are well-located on Everett Mall Way, a primary business arterial in Everett, Washington," said Buelsing. The property houses Union Bank's main Everett retail branch together with other administrative operations.
With the disposition of Arbor Park Shopping Center and acquisition of Union Bank Office complex, A&B Properties' commercial property/investment portfolio consists of 7.8 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. 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: Alexander & Baldwin, Inc.