A&B Properties, the real estate subsidiary of Alexander & Baldwin Inc., has purchased the 88,000-square-foot Lanihau shopping center in Kailua-Kona on the Big Island of Hawaii.
The value of the transaction was not disclosed.
The Lanihau shopping center, situated on a 9.7-acre fee-simple parcel, is anchored by a Longs Drug Store and a Sack ‘n Save grocery store. The property was 100 percent leased at the time of sale.
A&B has also acquired the development rights to an adjacent 22-acre vacant parcel, with the right to purchase the parcel in fee. A&B plans to develop an additional 238,000 square feet of office and retail space on the parcel, at an estimated all-in project cost of $85 million, which would create Kailua-Kona’s largest and most centrally located mixed-use commercial project, according to a company statement.
The development plans for the 22-acre parcel include two office buildings totaling approximately 91,000 square-feet, and a retail center comprising about 147,000 square feet of retail and restaurant space. The combined areas will have parking for more than 1,700 cars. It is A&B’s intent to develop the property with a joint venture partner.
A&B owns 91,000 acres 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.
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