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Demand for Quality Properties Holds Strong, Strengthening Yen Bolsters Pricing
HONOLULU – (October 26, 2009) – A&B Properties, Inc., the real estate subsidiary of Alexander & Baldwin, Inc. (NYSE: ALEX) (“A&B”), announced today that it has completed the sale of the Pacific Guardian Tower (“PGT”), a 130,600 square-foot office building in Honolulu, Hawaii to Maruito USA, Inc., the U.S. subsidiary of Japan-based Maurito Group, a financial services company.
“The sale of Pacific Guardian Tower is another clear signal of the continued demand for quality, stable income properties in Hawaii. Further, the favorable pricing we realized is a reflection of our efforts over the past several years to transform PGT into one of urban Honolulu’s premier office buildings,” said Norbert M. Buelsing, president of A&B Properties. “Under our ownership, average net rent at PGT increased 34 percent and occupancy increased from 74 percent to 98 percent presently, and a number of upgrades were made to improve the building’s aesthetic appeal. We expect to redeploy proceeds from the sale, on a tax-deferred basis, into other commercial real estate investments with strong growth potential.”
NAI Chaneybrooks represented the buyer, Maruito USA in the transaction and has also been appointed property manager and leasing agent for the Pacific Guardian Tower. According to Steve Sombrero, President and owner of NAI ChaneyBrooks, “Maruito has been actively investing in the United States, including Hawaii for more than a decade. The organization’s chief objective is to invest in Class-A property in prime locations for the long hold. Maruito views the Pacific Guardian Tower as one of the finest properties in Honolulu. Their motivation to invest stems from their belief that the Honolulu market will see a rebound much sooner than the rest of the country. We are actively looking for additional opportunities here in Hawaii.” Sombrero added that “for the Japanese investor, the strength of the Japanese Yen makes Hawaii investments a very lucrative opportunity. If it were not for the tight global capital markets, we would be seeing a repeat of the Japan bubble years of the 1980’s.”
PGT is located at the corner of Kapiolani Boulevard and Keeaumoku Street, across from a primary entrance to the Ala Moana Shopping Center in the Kapiolani office district, a submarket of Honolulu. The 18-story office building was built in 1989 and purchased in 2001 by A&B.
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 and Kauai Coffee Company, Inc.
About Maruito USA: Maruito USA is the U.S. subsidiary of Japan-based Maruito Group which owns and manages a vast portfolio of commercial properties primarily in Japan. It is also a major shareholder of Acom, one of Japan’s largest consumer loan company, a subsidiary of the Mitsubishi UFJ Financial Group.
About NAI ChaneyBrooks: NAI ChaneyBrooks is a full-service real estate and consulting services organization with multi-lingual and multi-cultural professionals providing expertise in cross-border commercial real estate transactions throughout Hawaii and the Western Pacific. It is a member of NAI Global, a managed network of the world’s leading commercial real estate firms. NAI ChaneyBrooks operates out of its corporate offices in Honolulu, Guam and Tokyo offering real estate brokerage, leasing and management services.
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