By Adriana Pop, Associate Editor
A&B Properties, the real estate subsidiary of Alexander & Baldwin Inc., has agreed to acquire the Pearl Highlands Center in Pearl City for $141.5 million.
Located 12 miles west of downtown Honolulu, the 415,000-square-foot fee-simple retail center is 98 percent occupied. The property spreads across 13.5 acres and is anchored by Sam’s Club, Regal Theaters, Ross Dress for Less, 24 Hour Fitness and a soon-to-be-opened Buffalo Wild Wings.
The purchase price includes the assumption of a $59.3 million mortgage, which matures in September 2016. The closing of the sale, expected to occur in the second half of 2013, is subject to various conditions, including the lender’s approval of the loan assumption.
“The Pearl Highlands acquisition will represent a significant advancement of our strategy to migrate our commercial portfolio back to Hawaii,” said Christopher Benjamin, A&B’s president & COO. “The addition of Pearl Highlands will boost our total Hawaii commercial square footage over the 2 million square-foot mark—a 25 percent increase—and will make A&B the second-largest retail owner/operator in the state.”
Centrally located, Pearl Highlands serves more than 220,000 Hawaii residents who live within a five-mile radius of the center.
“The Pearl Highlands acquisition not only accelerates our Hawaii growth but it reaffirms our ability to leverage our market knowledge and relationships to acquire significant assets through off-market transactions,” Benjamin added.
In other news, Host Hotels & Resorts Inc. has acquired the 426-room Hyatt Place Waikiki Beach in downtown Honolulu for $138.5 million. The seller of the property was an affiliate of Chartres Lodging Group L.L.C. and Morgan Stanley Real Estate Fund VII Global.
Kokua Hospitality will continue to manage the hotel, in accordance with a franchise agreement with Chicago-based Hyatt.
The property underwent a $45 million renovation in 2011 and was converted to a Hyatt Place the following year. Located just 1.5 blocks from Waikiki Beach, the hotel offers guests easy access to the Waikiki Aquarium, the Honolulu Zoo and the Kalakaua shopping/entertainment district.
Photo credits: www.pearlhighlands.com