A&B Purchases Industrial Space With Proceeds from Maui Ag Land Sale
Using $40 million in proceeds from the recent $262 million sale of agricultural lands on Maui, Alexander & Baldwin completed the off-market acquisition of two Class A warehouse buildings in Kapolei on Oʻahu.
Company executives say the purchase closed on Dec. 28, 2018 and the buildings represent 150,000 square feet of prime industrial space.
Located in Kapolei Business Park Phase I, the warehouses are built on adjacent parcels totaling approximately 6.45 acres and feature 32-foot clear heights, dock-high loading and ESFR sprinkler systems.
Approximately 75% of the space across the buildings will be leased by the former owner, Covan, a national moving company. The buildings also include rooftop photovoltaic systems, which will be used by tenants to help defray their energy costs.
On Dec. 20, 2018, A&B completed the sale of approximately 41,000 acres of agricultural farmland on Maui to Mahi Pono, a farming venture between Pomona Farming, LLC, a California-based agricultural group, and the Public Sector Pension Investment Board (PSP Investments), a long-term investor and one of Canada’s largest pension investment managers.
“These are high-quality industrial assets and we’re excited to add them to our portfolio. Our focus is on Hawaiʻi and this is just the first step in our effort to reinvest the proceeds from the sale of our Maui farmlands. We will continue to look for other opportunities to invest locally in commercial real estate,” said Lance Parker, A&B chief real estate officer.