Alberta Development JV Grabs 671 KSF Retail Portfolio from A&B Properties

Alberta Development Partners and an affiliate of Walton Street Capital have acquired the three-property A&B Properties Mainland Retail Portfolio and the Maui Mall, a total of 671,538 square feet in Colorado, California and Hawaii.
 Meadows on the Parkway in Boulder, Colo. .

Meadows on the Parkway in Boulder, Colo. .

Alberta Development Partners and an affiliate of Walton Street Capital, L.L.C., have acquired the three-property A&B Properties Mainland Retail Portfolio and the Maui Mall, a total of 671,538 square feet in Colorado, California and Hawaii.

The total amount spent was not disclosed, but the Boulder Daily Camera newspaper reported that two Colorado properties were sold for a total of $44 million. The newspaper said the buyers paid $33 million for Meadows on the Parkway in Boulder, Colo., and $11 million for Broadlands Marketplace in Broomfield, Colo.

Meadows on the Parkway is an eight-building center with 179,800 square feet of retail and 36,300 square feet of office space. Built in 1989, tenants include Safeway, Rite-Aid, Michael’s and Subway. Broadlands Marketplace, which opened in 2002, has 103,883 square feet and tenants like Safeway, Subway and H&R Block.

The third Mainland asset is Rancho Temecula Town Center in Temecula, Calif. Built in 2007, the 165,486-square-foot center’s tenants include Henry’s Farmers Market, Rite-Aid, Starbucks and LA Fitness.

The Maui Mall in Kahuli, Hawaii, with 185,732 square feet, was built in 1971. The mall is 95 percent occupied with tenants such as Whole Foods, Longs Drugs, Wallace Theaters and IHOP.

The deal on the Mainland shopping centers closed Dec. 31 and the Maui Mall closed Jan. 7, according to a release from CBRE’s National Investment Group. Brad Lyons, senior vice president, and Ron Urgitus, executive vice president with the group’s office in Denver, and Phil Voorhees, senior vice president in the Newport Beach, Calif., office represented the seller.

“The A&B Retail Portfolio was one of the only ‘value-add’ retail opportunities in the western United States of any size, attracting aggressive buyers from a variety of different capital sources,” Lyons said. “We had interest from the private capital sector as well as institutional buyers.”

Lyons told Commercial Property Executive the properties are stabilized, but there is “some development potential, some opportunities to redevelop, expand and repurpose various assets.”

The size of the portfolio was also attractive to bidders, he said, noting that most of the retail properties that have come on the market recently have been one-offs, not large, core-plus portfolios.

He described the bidding process as competitive but said Alberta Development Partners and Walton Street Capital “really impressed everyone with their capabilities and their track record.”

Alberta Development Partners is a real estate acquisition, development and investment firm based in Greenwood Village, Colo. The firm, which has several joint ventures with Walton Street Capital, focuses on regional retail shopping centers, mixed-use commercial and residential projects and build-to-suit projects in the western U.S.  Alberta Development Partners has delivered $460 million worth of completed projects in the past four years and closed on more than $162 million worth of land for new development. The firm, in a joint venture with PCCP L.L.C. of San Francisco, recently sold the major portion of Cornerstar, a 750,000-square-foot power center in Aurora, Colo., to Cole, a net-lease REIT, for $116.5 million.

A&B Properties is the real estate subsidiary of Alexander & Baldwin, Inc., one of Hawaii’s largest private landowners. Based in Honolulu, the firm has been selling off much of its Mainland assets in recent months as it looks to have approximately 80 percent of its commercial portfolio net operating income come from Hawaiian properties. Proceeds of the sale of the Mainland assets is being used to buy more properties in Hawaii and toward the $141.5 million purchase in September of the Pearl Highlands Center, a 415,000-square-foot retail power center on Oahu. In December, A&B bought a portfolio from Kaneohe Ranch and the Harold K.L. Castle Foundation for $373 million that consists of 386,000 square feet of grocery- and drug-store-anchored shopping centers, retail strip centers, light industrial properties and ground leases, primarily in Kailua, Oahu.