A&B division buys
shopping complex
in Kailua-Kona

A subsidiary of Alexander & Baldwin Inc. has purchased the Lanihau Center shopping complex as well as the development rights for an adjacent 22-acre parcel in Kailua-Kona, for an undisclosed price. The deal on the vacant parcel gives A&B Properties Inc. the right to purchase the land.

A&B Properties plans an $85 million, 238,000-square-foot, mixed-use commercial project on the undeveloped land to include two office buildings and a retail and restaurant complex with 1,700 parking stalls.

"The strategic acquisition of the adjacent parcel will enable A&B to build upon the center's established presence and provide additional retail choices," said Mike Wright, A&B senior vice president for acquisitions and investments.

The project also will add "much-needed office space and restaurants to this fast-growing Kailua-Kona region," he said.

PM Realty Group is coordinating leasing of the new project, the name of which has not been revealed.

Lanihau Center is 100 percent leased, is anchored by a Longs Drug Store and Sack 'N Save grocery store, and is bounded by major thoroughfares including Queen Kaahumanu and Kuakini Highways and Palani Road.