Hawaii's A&B Buys Valencia Building

Terms of the deal were not disclosed, but A&B is believed to have paid about $5 million for the newly constructed facility, which is fully occupied by Vista Controls on a seven-year lease that was signed last year. The tenant is a manufacturer of computer systems.

A&B bought the holding as part of a 1031 Exchange using proceeds from other properties the firm sold earlier in the year. Craig Peters and Doug Sonderegger of the CB Richard Ellis Inc.'s Sherman Oaks office represented buyer and seller, Intertex of Valencia, which developed the property.

A&B says the acquisition complements another recently announced office development in Valencia and furthers the company's strategy of growth in Mainland US markets. The new A&B asset is located within Valencia Commerce Center, a master-planned development at the intersection of the Interstate 5 Freeway and State Highway 126.

The deal marks A&B's second transaction in Valencia this year. In January, A&B Properties announced the formation of a joint venture with an Intertex Properties affiliate, Westridge Executive Building LLC, to develop a 64,300-sf, class A suburban office building inside the park's bounds. That building is underway.

Michael G. Wright, an A&B vice president, says that while the firm's investment focus remains on Hawaii, markets like Valencia offer "compelling benefits," such as a growing population, job growth and an active real estate market.

A&B Properties has a portfolio of US commercial properties consisting of more than five million sf of leasable retail, office and industrial space. It's also an active real estate developer, having completed numerous projects, of all types and sizes, on the four major islands in the state of Hawaii. Alexander & Baldwin Inc. owns 91,000 acres in Hawaii, making it Hawaii's fifth largest private landowner.