Commercial Real Estate, Investment, Retail

Stoneridge Capital Partners buys Mililani Shopping Center

A&B Properties, the real estate subsidiary of Honolulu-based Alexander & Baldwin, said Monday it completed the sale of the Mililani Shopping Center.

The sale of the 180,300 square-foot retail center, located in Central Oahu, was for $50.3 million in cash. The asking price was $55 million.

The transaction marks the entry into the Hawaii market for the buyer, Newport Beach, Calif.-based Stoneridge Capital Partners.

“Due to supply constraints within the local market, this shopping center benefits from both high occupancy levels and historically high rental rate growth, making it an ideal fit for our real estate investment strategy,” said CEO Greg Merage. “We will continue to leverage our strong cash position to seek out these types of investment opportunities and further expand our portfolio of commercial and multifamily assets.”

In a separate transaction, A&B Properties acquired the Meadows on the Parkway Shopping Center, a 216,400 square-foot retail center in Boulder, Colo., for $30.8 million.

“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,” said Norbert M. Buelsing, president of A&B Properties. “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.”

Mililani Shopping Center was built in 1976 and is anchored by Foodland Supermarket, Ross Dress for Less, 24-Hour Fitness, and food, retail and professional services outlets.

Alexander & Baldwin (NYSE: ALEX) is involved in ocean transportation and logistics services through subsidiaries, Matson Navigation Company, Matson Integrated Logistics, and Matson Global Distribution Services; in real estate through A&B Properties; and in agribusiness through Hawaiian Commercial & Sugar Company and Kauai Coffee Company.