November 20, 2013
KAILUA – Kaneohe Ranch Company LLC is selling substantially all of its Oʻahu land holdings to kama‘āina company Alexander & Baldwin, Inc. (A&B) for $260 million. It will continue to own and manage some Oʻahu properties as well as its mainland land assets.
Kaneohe Ranch is selling 40 assets totaling 633.8 acres of its Oahu land to A&B – 25.9 acres of which are located in downtown Kailua and 22.5 acres outside downtown Kailua. The Oʻahu assets it is selling also include properties in Honolulu, as well as 585 acres of agricultural and preservation lands in Windward Oʻahu.
The sale will take place at the same time that the Harold K.L. Castle Foundation sells all of its properties to A&B, 10.5 acres of which are located in downtown Kailua.
The total sales price for both the Kaneohe Ranch and Harold K.L. Castle Foundation land assets being sold is $373 million. The transactions are expected to close in late December 2013.
“I don’t believe we could have found a better buyer than Alexander & Baldwin,” said Mitch D’Olier, Kaneohe Ranch president and CEO, and president of the Harold K.L. Castle Foundation. “A&B is such a respected kama‘āina business institution with a similar history to that of the Castle family. They both grew from Island roots with a strong understanding of Island culture and a true, long-term commitment to improving Hawaiʻi. I know that Chairman and Chief Executive Officer Stanley Kuriyama, President and Chief Operating Officer Christopher Benjamin and their team will be good stewards of this property, its businesses and tenants, because I’ve witnessed their careful and sensitive approach over many years.”
As a result of the sale, Kaneohe Ranch will undergo restructuring, D’Olier said. Kaneohe Ranch offices will remain at Castle Junction at the entrance to Kailua.
D’Olier said A&B is likely to continue the thoughtful management of Kailua that Kaneohe Ranch has pursued for many years.
“Kailua is a unique place, a seaside community that even the president of the United States thinks is special,” he said.
Kaneohe Ranch oversaw redevelopment of the Kailua Town Center. As Kailua’s 50- and 60-year leases expired over the past 10 years, it made Kailua Town a pedestrian-friendly retail-and-dining gathering place. Aside from successful iconic stores like Whole Foods Market next to one-of-a-kind local shops and restaurants, the town center has become a showcase for Hawaiian culture, with “Kanikapila in Kailua” hosting some of the state’s best known Hawaiian musicians and the “I Love Hula” series providing a showcase of top Island hula hālau.
In announcing the property sale to A&B, D’Olier thanked the many commercial tenants and members of the Kailua community who have worked with Kaneohe Ranch and the Harold K.L. Castle Foundation over the years to make Kailua a vibrant town with a real Hawaiian sense of place.
The land sale will leave the Harold K.L. Castle Foundation – the state’s largest private foundation –stronger than ever and will enhance its ability to pursue its mission to strengthen the vibrancy of Windward Oʻahu communities; close the achievement and preparation gaps in public education so that all of Hawaiʻi’s children have access to high-quality pre-K-12 education that prepares them for success in college, career and citizenship; and restore near-shore marine ecosystems. The proceeds from the sale of the Foundation properties will be placed into its endowment to serve as a permanent source of funding for its grant-making.
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Kaneohe Ranch manages the real estate owned by the family business entities of Harold K.L. Castle and Alice H. Castle and their nonprofit charitable foundation, the Harold K.L. Castle Foundation. The portfolio includes Kailua properties consisting of commercial, retail, office and industrial leasehold parcels. Kaneohe Ranch Company LLC also owns properties in eight mainland states.