A&B sells 2 downtown buildings for $25.5M

Alexander & Baldwin Inc. said yesterday it has completed the sale of two downtown Honolulu office buildings for a total of $25.5 million.

A&B subsidiary WDCI Inc. sold the Haseko Center and Oceanview Center, which together contain approximately 183,000 square feet of office space and more than 500 parking stalls, to Arroyo Realty Partners of Los Angeles and its investment partner REDICO of Southfield, Mich.

WDCI acquired both leasehold properties in 1999 for $18 million.

"At the time we acquired these properties we anticipated Honolulu office values would improve due to the absence of new construction and an expectation of an improved economy," said Norbert Buelsing, A&B Properties' executive vice president in charge of A&B's leased portfolio. A&B received an attractive offer to purchase the properties and plans to reinvest the proceeds in real estate in Hawaii or on the mainland, he said.

The eight-story Haseko Center, located on Mililani Mall and Halekauwila Street, contains 84,100 square feet of leasable space and 220 parking stalls. It was built in 1980. Oceanview Center, located next to Haseko Center, was built in 1987 and also has eight stories with 99,200 square feet of leasable space, with 292 parking stalls.

Occupancy rates of the two buildings currently are 86 and 85 percent, respectively, with numerous tenants in the legal and accounting professions, and several state agencies located in the buildings, A&B said.

A&B owns 91,000 acres in Hawaii, making it the state's fourth largest private landowner.