A&B Properties shines through building transactions

Whatever may be the fears of real estate developers and experts, business transactions are going on in the realm of the United States of America. The greatest specimen of this can be the sale of Southbank II, a 120,800 square-foot, single-story office building in Phoenix, Arizona, and a 37,300 square-foot ground lease parcel in Kahului, Maui. Both of these buildings have been sold by A&B Properties, Inc., the real estate subsidiary of Alexander & Baldwin, Inc.

Can this be considered as a major achievement? There is no doubt in it. Speaking on this, Norbert M. Buelsing, President of A&B Properties stated, “The sale of Southbank and the Maui parcel demonstrate continuing demand for quality, stable income properties and well-located land in Hawaii. At Southbank, the recent execution of long term lease agreements and the stable operating performance during our 11-year ownership, coupled with the underlying appreciation of real estate values, resulted in the disposition at a favorable price.”

It is to be noted that Maui parcel was a ground lease within an industrial park and it had been developed by A&B beforehand exclusively. On this Norbert M. Buelsing said, “The parcel sale is the culmination of a multi-year strategy which consisted of land entitlement and investment in subdivision development, and a program of lot and ground lease sales, steps that together create value over time.” “We continue to look for new opportunities to further A&B’s core strategy of redeploying sales proceeds, on a tax-advantaged basis, into high-quality, commercial properties in markets that have a good growth potential,” added Buelsing.

Now let’s turn our attention on Southbank. It was built in 1997 and acquired by A&B in 1998. The property is located in the Southbank Business Park, less than five miles from Phoenix Sky Harbor International Airport and downtown Phoenix, and with direct access to Interstate 10. Tenants at the property include University of Phoenix and Encore Legal Solutions.