Alexander & Baldwin Announces A Build-To-Suit Lease And Two Sales At Its Maui Business Park Phase II Project In Kahului, Maui

Final Phase of Subdivision Provides Unique Commercial Development Opportunities in Kahului, Maui

HONOLULU, Feb. 21, 2024 /PRNewswire/ -- Alexander & Baldwin, Inc. (NYSE:ALEX) ("A&B" or "Company"), a Hawai'i-based company focused on owning, operating, and developing high-quality commercial real estate in Hawai'i, announced a build-to-suit lease and two sales at its Maui Business Park Phase II (MBP II) project in Kahului, Maui.

The first transaction is a build-to-suit industrial lease to develop a Class A, 29,500-square-foot warehouse and distribution facility on two lots totaling 2.4 acres for lease to a national food manufacturer and distributor. The tenant will relocate their existing operations in Central Maui. Completion and occupancy of the facility is expected in the fourth quarter of 2025.

Additionally, the County of Maui initiated the purchase of 12.5 acres in the business park's final phase of horizontal development for $17.4 million, which will close upon subdivision completion. The County plans to construct a new facility for its Department of Transportation, encompassing a bus hub, maintenance facility, and secure fleet storage.

With 21 remaining lots ranging from one-half to five acres, the project's final increment allows for warehousing, distribution, light manufacturing, retail, and office uses. It represents the last opportunity to own or lease commercial space fronting the park's highly trafficked main thoroughfare, Ho'okele Street. A&B has commenced the subdivision process and intends to complete all infrastructure improvements required to deliver finished lots in this final increment by early 2026. Land in this final increment is currently available for build-to-suit, ground lease, and fee purchase as condominium units prior to subdivision completion, allowing users to permit and construct their vertical improvements concurrently with horizontal build-out.

The second sale consists of two of the remaining lots available in the park's initial increments, totaling 1.3 acres, sold to Hamai Appliances, Inc., for $2.4 million earlier this month. This local, family-owned retail business will build a showroom and service center to expand its current operations in Kahului to better serve its Maui clients.

"We are encouraged by the momentum and diversity of leasing and sales activity at Maui Business Park Phase II," said Jeff Pauker, chief investment officer at A&B. "With limited parcels available for industrial and retail use in Central Maui, we're pleased to commence infrastructure work on the Company's final subdivision increment within the park to create additional land inventory for future A&B development or parcel sales."

Pauker continued, "Adding new inventory is an opportunity for users to expand or enter the market through build-to-suit or ground lease opportunities with A&B or as land purchasers, all of which will contribute to the local economy and reinforce our long-standing commitment to the Maui community."

Maui Business Park Phase II is represented by Colliers.