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As A&B progresses on its strategic transformation to focus exclusively on our Hawaii commercial real estate business, we’ve refreshed our Vision, Mission and Values. The refresh focuses on the next phase of the simplification and strengthening of our commercial portfolio, which includes supporting our communities by fulfilling their everyday needs at a nearby A&B neighborhood shopping center and expanding our commitment as Partners for Hawaii. Throughout our 150 years of evolving as a company, our core values have remained.

Alexander & Baldwin (NYSE: ALEX) (A&B) and its subsidiary Grace Pacific LLC (GP), Hawaii’s largest vertically-integrated materials and paving contractor, are pleased to welcome Myles Mizokami as GP’s chief operating officer.  

Myles joins Grace Pacific from Nan Inc., where he served as director, Civil Operations for more than ten years. Prior to this position, he worked in project management and field leadership at several other leading Hawaii contractors, primarily focusing on civil infrastructure projects, including roadway and utility improvements.  

Myles Mizokami has served in various capacities on construction industry association and other advisory boards throughout his career. He earned a Bachelor of Science, electrical engineering degree from the University of Southern California (USC). 

See official news release here.

COVID-19 Information for Tenants

The safety and welfare of our customers, tenants and employees is our highest priority. Beginning in early March, we increased on-site hygienic and sanitation procedures throughout our properties to help prevent the spread of COVID-19 and all respiratory illnesses and are taking all necessary precautions at our centers to protect the well-being of the larger community.

While non-essential businesses were mandated to close until April 30, 2020, our retail centers remain open providing essential services including groceries, healthcare, pharmacies, delivery and take-out food and financial services. For many, we understand that this unprecedented situation, which continues to unfold every day, is impacting your businesses and employees in innumerable ways. As we continue to work through this crisis with you, we will provide resources and information to aid you.

General Information on COVID-19

• The State of Hawaii Department of Health has created a website dedicated to providing COVID-19 information and resources to the community.
• The Centers for Disease Control and Prevention has the latest medication information on COVID-19.
• Aloha United Way has created a hotline in partnership with the DOH to answer COVID-19 questions. Dial 211.

Information for Employers

• The Hawaii Chamber of Commerce has produced a COVID-19 webpage that is geared toward employers in Hawaii.
• The Hawaii Department of Labor and Industrial Relations has workplace information for employers.

Financial & Business Resources

The Small Business Association (SBA) has created a comprehensive COVID-19 page with resources for small businesses.

• Economic Injury Disaster Loan Program: small business owners in Hawaii are eligible to apply for a low-interest loan due to COVID-19.
• Lender Match Program: information on loan resources for small business to utilize for operations.

Facebook has launched a grant program to provide financial support for small businesses impacted by COVID-19.

Programs are being established on the federal, state and county government levels that may provide small businesses assistance to help minimize the economic impact of COVID-19.  This information for our tenants will continue to be updated as additional materials become available. We also recommend that you conduct your own research and diligence on these programs for their respective applicability to your business.

Please reach out to your property manager with any questions or concerns. You may also contact us at [email protected] and through our hotline at (808) 525-6613.

Originally published in Hawaii Business Magazine | Photo courtesy David Croxford

A&B has evolved over its 150 years, starting in sugar, adding shipping, then tourism and now focusing on Hawai‘i real estate. Benjamin attributes the company’s longevity to being able to morph into relevant businesses that provide value and long-term stability.

Q: Where is A&B with its business simplification strategy?

Benjamin: We have achieved some goals, like being 100% Hawai‘i focused, which we achieved in 2018. The next goal is to be around 95% focused in commercial real estate. We’re not there yet; we still have Grace Pacific (a construction division) and a number of residential real estate projects that we intend to sell within a couple of years. We are now around 75% commercial.

As for Grace Pacific, we have engaged with prospective bidders and provided information to them. We are awaiting their interest and valuation of the company.

Q: You are 100% focused on Hawai‘i, yet some say diversification is good because it helps mitigate risk.

Benjamin: Yes, but a company should do what it knows best. For A&B, Hawai‘i is our home and we have been here for 150 years. We know the market and the community and the people. This allows us to create value in Hawai‘i much more than in other places on the Mainland.

Yes, the flip side is diversification can help during market downturns and make your earnings more stable. However, sometimes companies that seek too much diversification wind up diluting themselves. We are going to create value in the market and business we know best, then our investors can diversify their geographic risk by investing in a portfolio of companies.

Q: A&B considered converting to a real estate investment trust for many years before becoming a REIT IN 2017. What finally triggered the move?

Benjamin: We are entirely driven by the business we can do best and where we can create the best value for our stakeholders, which includes our employees, communities and shareholders. What we do best is commercial real estate. We spun Matson in 2012 and made the decision to be 100% Hawai‘i. In 2016, we decided to go almost exclusively into commercial real estate. Then we decided the best vehicle for us would be a REIT structure, because it is what most commercial real estate investors look for.

Q: The move was also intended to provide better access to capital and a bigger investor base. How is that strategy working so far?

Benjamin: The whole process is not done. It is a little like changing the offensive scheme on a football team. When you first change your approach, you don’t have all of the systems and components to be successful in that new strategy. So we are still developing that. But we have made significant gains. We brought in all of the right people to lead our commercial real estate business, and they are working well with our existing team. What we do next is to make sure we have all the right information systems and practices. We are making great progress in that.

The last piece is having the business focus that we are striving to achieve: 95% focused on commercial real estate. We are still a bit of a complicated story for investors, and our objective is to be more simplified. Once we have done that we will reap the rewards and be able to grow because we have better investor appreciation and access to more capital.

Q: With the City and County of Honolulu targeting illegal vacation rentals, do you think that will affect customer traffic at commercial properties in Kailua?

Benjamin: The impact on Kailua of that law is difficult to predict. It depends on the effectiveness of enforcement. Our focus in all of our properties is the local markets. We have focused on grocery-anchored community shopping centers and industrial properties because we do not want to be a primarily tourist-oriented business. We all know Hawai‘i benefits from tourism, but we want to be focused on serving the local community. 

What I can say is that A&B is very focused on engaging with the community. So even if there is a decline in tourist traffic, we will help our tenants survive and thrive. Look at what we did with the old Macy’s store in Kailua. We converted that into a gathering place for the local community: from a fitness center to a vegetarian food store to two vibrant indoor/outdoor restaurants. Locals are flocking to that.

Q: Many businesses in Hawai‘i chase tourism dollars, but the strategy you describe goes against that current. Why?

Benjamin: Tourism tends to be a volatile portion of our economy. Clearly, the state has seen a tremendous uptick in tourism, but that can turn around. The local residents are here and if we can appeal to them and provide for their needs, it is a more stable business model.

Q: Real estate is cyclical, and the predictions are the market will cool off. How are you preparing?

Benjamin: The odds are there will be some slowdown over the next few years, and the best way we can prepare is by ensuring we have a strong balance sheet. We are taking steps that ensure our leverage is appropriate and that we are well-positioned for a downturn. All downturns are different, so we don’t know to what extent our centers will be impacted, but we have to be prepared regardless.

Original article posted in MidWeek | Photo courtesy Anthony Consillio

Since its founding in 1870, Big Five sugar titan Alexander & Baldwin has evolved into a commercial real estate developer — and partner to the communities it continues to invest in. Today, the company is capably led by president and CEO Chris Benjamin.

For 150 years, Alexander & Baldwin has been a major player in Hawai‘i.

The Maui-based sugar plantation founded by Samuel Alexander and Henry Baldwin that started it all is a far cry from today’s commercial real estate juggernaut, one of the top 10 landowners in the state.

Chris Benjamin, president and CEO of Alexander & Baldwin, says that humble legacy still guides the company in its decisions today.

“It was a partnership that started in Hawai‘i, and its business was entirely in Hawai‘i.

“What we try to do is be involved in … the industry we have the biggest impact in and create the most value for our community, employees and shareholders. That’s the real estate industry.”

It wasn’t always this way for Alexander & Baldwin. The company was once highly diversified.

In addition to its signature sugar plantations, the company also invested heavily in agriculture and shipping, as well as expanding its reach to the mainland.

Benjamin even notes that Alexander & Baldwin once owned a potato farm in Idaho, as well as a teakwood manufacturer in Asia at one point.

But eventually, the company realized it was time to return to its roots.

“It’s been about doing what we believe we can do best,” Benjamin explains. “The first part of that was deciding to come back to Hawai‘i. We had operations and real estate assets across the country, but we truly believe we know Hawai‘i the best, and that’s where we should be focused.”

So, Alexander & Baldwin decided to specialize in commercial real estate — in particular, in grocery store-anchored shopping centers.

A few of their properties that residents may be familiar with: ‘Aikahi Park Shopping Center, Gateway at Mililani Mauka, Hōkūlei Village, Kailua Town, Kāne‘ohe Bay Shopping Center, Kunia Shopping Center, Laulani Village, Mānoa Marketplace, Pearl Highlands Center, Wai‘anae Mall, Waipi‘o Shopping Center — and the list goes on.

“Our focus is on real estate that focuses on the daily lives of Hawai‘i residents,” Benjamin says.

“We are not owners of big malls or Waikīkī retail. We are owners of your neighborhood shopping center.

“These are centers that help meet the daily needs of Hawai‘i’s citizens, not typically the needs of visitors or tourists.”

This focus ensures that the company remains in touch with the communities its founders cherished, Benjamin says, citing Alexander & Baldwin’s ability to build gathering places and find tenants that offer services residents want, as well as ensuring the tenants themselves can thrive.

Admittedly, sometimes the company does clash with its communities — as recent events in Kailua, Mānoa and other areas attest to.

Benjamin says the company does its best to engage with its detractors.

“The only way to start building trust is to acknowledge it doesn’t exist and go to greater lengths to listen and find mutually beneficial decisions.”

Alexander & Baldwin, for example, sent out a survey to all Kailua residents — some 16,000 homes — to better understand what the community prioritizes.

It also published the results, even those that painted the company in a less than flattering light.

“It’s important to remember that we’re here for the very long term,” Benjamin says. “We’re not a real estate owner that’s going to flip properties in a short amount of time. We’re not going to pretty up a shopping center and sell it.

“We can do what’s right for a community over the long term because what’s right for the community is good for us.”

Of course, business isn’t the only way Alexander & Baldwin tries to serve Hawai‘i.

“The whole culture of giving back to the community and being part of the community really goes back to our founders,” says Meredith Ching, executive vice president, external affairs.

“We have these old records of donations of land and cash donations to the Maui Swim Club from Samuel Alexander and Henry Baldwin themselves.

“It’s just something that’s in our DNA.”

Benjamin says that the company typically gives 1-2 percent of its pre-tax income in donations to the community.

Of course, sometimes Alexander & Baldwin uses its real estate clout to give back, too.

Benjamin cites the story of charter school DreamHouse ‘Ewa Beach.

“We were able to facilitate a lease,” he says. “It wasn’t just a matter of it being a convenient location for them. They literally could not have started up as a school if they did not get a lease or get into a space by a certain date; they would lose their funding.

“They had tried virtually everywhere in the ‘Ewa community.”

But the company had a space in Laulani Shopping Center that would work as a temporary facility until the school found a more suitable location.

So they worked together to make it happen.

Alexander & Baldwin also puts special emphasis on serving its employees and empowering them to give in their ways, too. Diversity is a big priority, Benjamin says.

In recognition of the company’s 150th anniversary, two new giving initiatives are coming up, says Ching.

The first, Kōkua 150, will allow employees to select a charity of their choice. The company will gift every single one a $150 donation in an employee’s name.

“We hope it will make (employees) more aware of their communities and also make communities more aware of Alexander & Baldwin’s support of their employees and programs,” Ching says.

The second push, 150 Days of Giving, begins Jan. 20. Company employees will band together to give “sweat equity” to various projects.

The first is a partnership with Kupu and the state Department of Land and Natural Resources to clean up and replant Hāmākua Marsh State Wildlife Sanctuary.

This is all, of course, in addition to pre-existing programs where the company matches employee donations to nonprofits, as well as its consistent support of Aloha United Way and its related charities.

So, in what direction will this 150-year-old company go in the next 150 years?

“I’m sure no one would have predicted we’d be a commercial real estate company 150 years ago,” Benjamin quips.

“I believe some things are certain. We will continue to focus on Hawai‘i, take a long-term view, want to be partners with the community — and that we will be in commercial real estate.

“We may shift our focus in some ways, and new opportunities may emerge, and the way we, as a society, utilize shopping centers and retail will probably evolve quite a bit.

“The primary thing that won’t change is our commitment to Hawai‘i.”

A BIT ABOUT BENJAMIN

President and CEO Chris Benjamin — the 18-year Alexander & Baldwin employee who now heads the whole shebang — admits his path has turned in unexpected ways.

He moved to Hawai‘i in 1992, busily working on startups in Asia and the mainland. But he soon found himself admiring Alexander & Baldwin’s storied headquarters in downtown Honolulu, as well as the company’s long legacy in the state.

“I applied for a job here in large part because it was diversified. It had a wide range of business opportunities, and I found that exciting.

“The business I had the least experience in was the real estate business, so it’s a bit ironic that today I’m running a real estate business,” he jokes.

But he truly appreciates the company culture. He joined three months before 9/11, and was touched by the email that then-CEO W. Allen Doane sent out — a truly heartfelt message about his own feelings about the tragedy, as well as ways the company could help.

Benjamin, the 16th CEO in Alexander & Baldwin’s history, genuinely loves his job.

“I value working for a company that values that (compassion) in its leadership. It doesn’t mean we don’t want to make a profit; we have to make a profit, but we can do it in a way that’s respectful of the community.”

Lance Parker, A&B’s chief real estate officer, recently sat down with Pacific Business News to share his thoughts about the company’s growth as a Hawaii-focused commercial real estate company.

The interview was published in the Oct. 18 edition of Pacific Business News. Here are some highlights from the article, which is only available to the paper’s subscribers:

• Parker described how A&B’s relationships in the local real estate industry are an essential part of the company’s success:

“As we all know, Hawaii is extremely relationship driven,” said Parker, who came home to Hawaii to join A&B 15 years ago after working in California and was promoted to his current position last year after serving as president of A&B Properties since 2015. “The real estate industry is extremely relationship driven, and so, we try to maintain those relationships consistently and constantly … In every case, we had existing relationships with the sellers.”

• Parker also described A&B’s efforts to invest in retail space in Hawaii, the company’s redevelopment of the old Kailua Macy’s building into the new Lau Hala Shops, and the planned $18 million refresh of Aikahi Park Shopping Center.
• When asked if A&B has a preference for national or local tenants, Parker expressed the company’s support of businesses from Hawaii, saying:

“All things being equal, we’d certainly have a bias toward local. We certainly encourage small, local businesses.”

Pearl Highlands Center is adding four new tenants to its mix of shops, restaurants and services. Roger Dunn Golf Shops, Spectrum, Tin Hut and Pampanga Kitchen will all be moving into the shopping center, anchored by Sam’s Club, 24 hour Fitness, Regal Pearl Highlands and Ross Dress for Less.

Pearl Highlands Center has more than 30 tenants in its 411,300-square-foot retail center.

“Each of these tenants brings something new to our already diverse mix of shops, restaurants and services, so we are excited to welcome them to the Pearl Highlands Center family,” said Darren Pai, a spokesman for Honolulu-based Alexander & Baldwin (NYSE: ALEX) that manages the center.

Roger Dunn Golf Shops is moving its Pearl City store into a 5,610-square-foot store in Pearl Highlands Center, slated to open in December. The store will continue to carry a full range of equipment, accessories, shoes and apparel, and will also feature an indoor putting green, golf simulators, hitting stalls and club repair.

Spectrum‘s newest 3,073-square-foot store is open for business and offers Leeward customers a convenient location to make payments and shop for mobile, internet, TV and voice services.

Tin Hut’s new 648-square-foot location at Highlands Market, the center‘s food hall, opened Monday and will be the company‘s first brick- and-mortar restaurant. The company started as a barbecue food truck business featuring Texas brisket, Carolina-style pulled pork, Kansas City ribs and southern-style fried chicken.

A 439-square-foot Pampanga Kitchen is also slated to open its third Oahu location in Highlands Market later this month, featuring a menu of Filipino dishes.

As published

By Nina Wu

Lau Hala Shops, the new retail center that takes the place of the former Macy’s in Kailua, has opened its doors for business, symbolizing Alexander & Baldwin’s vision for its commercial holdings in the beach town.

The 52,000-square-foot building at 573 Kailua Road has been transformed by A&B into a new mix of restaurants and shops that used to house the department store. In place of the department store, which closed two years ago, are 10 leasable spaces ranging from 800 to 20,000 square feet each.

Visitors entering the main lobby from the parking lot will see a large staircase that leads up to BJ Penn’s UFC Gym, which opened its doors on the second floor in mid-November. On the ground floor, chef Roy Yamaguchi’s Goen Dining + Bar, with open-air seating, began serving the Tuesday before Thanksgiving, and is now open for lunch and dinner.

Maui Brewing Co. is expected to open a restaurant, which is under construction on the Kailua Road side of the retail center, sometime in December. Natural grocer Down to Earth also plans to relocate to the shops, filling out a sizable 15,000 square feet, from its current location on Hamakua Drive, in the middle of next year.

Honolulu-based architect AHL, formerly Architects Hawaii, added windows to the lobby and second floor, opening it up, and softened the exterior with the addition of wood-toned screens. Some of the original, white-painted brickwork, however, remains, along with Macy’s elevator — the first to be installed in Kailua in 1960 — as a nod to the building’s history.

Gone, however, is the escalator that once connected Macy’s first and second floors.

“When we decided to redevelop the old Macy’s building in Kailua, it was important to us to ensure the project would respect the history of the area, be designed with sustainability in mind and enhance the surrounding community,” said A&B spokesman Darren Pai. “Kailua is a vibrant community, with its own unique charm and character. Our hope is Lau Hala Shops will serve as a gathering place for Kailua families to enjoy for years to come.”

Earlier this week Kailua artist Leanna Wolff added the finishing touches to four panel paintings she was commissioned to create — a serene, local-inspired underwater scene incorporating marine debris gathered from Kalama shores — on the rear wall of the main lobby area, which offers two spacious restrooms.

The lighting elements on the panels play off of the pendant lights hanging down from the high ceiling, adjacent to the steps leading to UFC Gym, which is bustling with new members.

At a beach cleanup Wolff organized at Kalama earlier this year, people gathered some of the debris that is featured in the paintings and wrote down some of their thoughts, all of which is incorporated into the artwork. Wolff usually includes microplastics into her signature waves and seascapes, but this time was able to put in larger pieces, as well as beach sand, because of the scale of the panels, which measure 8 feet wide by 3-1/2 feet tall each.

Upon closer examination, what looks like a rocky shoreline framing the ocean is actually a plastic toothbrush, fish float, toy soldier, toy gun and slippers.

“I thought about how I could involve the community in this piece,” she said. “That was really important to me because I feel this is a piece that’s going to stand here for decades, and I want people to have a connection to it.”

On the wall by the entrance to the lobby hangs a set of decorative ironwork featuring the “LH” initials from a railing by the original developer Liberty House to pay homage to the building’s 65-year history. They stand for Liberty House as well as Lau Hala Shops. On the other wall are patterned wood doors that originally hung on Macy’s second floor.

Outside of the building, a curved promenade features walkways made from rock salt-stamped concrete, planters with seating areas, a bike rack and a water fountain with a refill station and special drinking bowl for dogs.

A&B Properties, which owns 90 percent of the retail buildings in Kailua, began construction on Lau Hala Shops in February 2017, describing it as “a new gathering place” with a mix of restaurants, retailers and services focused on lifestyle and wellness. A&B described the creation of Lau Hala Shops as “the first phase of A&B’s long-term vision for its Kailua Town holdings, which seeks to redevelop thoughtfully and responsibly the A&B-owned properties within the commercial core of Kailua.”

The existing Macy’s building had good bones to work with, according to AHL President and CEO Bettina Mehnert, and architects aimed to preserve its Modernist lines.

“It’s a good example of how the architecture is trying to embrace the building’s history,” she said. “This is the best way to be sustainable: You keep what’s there and you update it. … We still have the bones of the building, and we have some sort of emotional connection to it, but now it has new life.”

Kailua resident Jim Driscoll said he welcomed more dining options in town, and he’s signed up for the UFC Gym, which is within walking distance. Being new to the area, he admitted having no memory or nostalgia for what was there before.

Kawika Ringler of Kaneohe, on the other hand, recalls what Kailua was like when he grew up there from the ’60s to the ’80s. He used to shop and eat at the restaurant at Liberty House, and remembers a dairy farm at the site of the current Target store. Kailua had few tourists then, he said.

While he might visit Lau Hala Shops from time to time, Ringler said much of Kailua is now for tourists.

In its third-quarter earnings report, A&B said the center was 89 percent leased as of Sept. 30, with more than half of the shops opening at year’s end.

The building was home to Liberty House, which opened its doors in 1946, then became Macy’s in 2001. The Macy’s store in Kailua had a 15-year run before closing in 2016.

Many of the improvements to the former Macy’s building were focused on sustainability, according to A&B, which installed energy-efficient lighting, water fixtures and environmental control systems.

Harley-Davidson, which was earlier announced as a tenant, will no longer be opening a boutique there. A few spaces still remain for lease along the lane across from Ulta Beauty, which just opened its doors in October in a space formerly occupied by Pier 1 Imports.

The new Down to Earth in Kailua, meanwhile, will be more than double the size of its current 6,000-square-foot store along Hamakua Drive, and is just a short walk from its competitor Whole Foods Market. It will offer a mezzanine, expanded deli and grab-and-go food, including pizzas, cold-pressed juices, sandwiches and soups.

Originally published in The Star Advertiser

Bill Paik
Chief Operating Officer,
Grace Pacific LLC

With 46 years of hard-earned experience in the construction industry, Bill Paik has done it all — from working as a laborer in his first job with Hawaiian Dredging, and up through the ranks to eventually leading two local companies as president. Now, Paik is chief operating officer for Grace Pacific LLC. Born and raised in Kona, Hawaii, Paik holds bachelors and masters degrees in business administration. But for all his titles and achievements, perhaps the one he values most is the black belt he earned in judo at age 16, a martial art he started at age five.

“Construction is a tough and unique business, and it takes many years of experience and hard work to be successful,” said Paik. “Judo ingrained in me the lifelong skills of discipline, patience, determination, humility and hard work. You learn who you are physically, mentally and morally. Judo also teaches you to be willing to sacrifice so that your fellow judoka can also perfect the art, even as you both develop expertise in ‘the gentle way.’”

It is this abiding philosophy that has guided Paik’s approach to life and work. It also makes him ideal for the mission he was tasked with at Grace Pacific Under the leadership of Pike Riegert, the company’s president, Paik is bringing fresh eyes to help lead and support an important cultural and business transition for Grace Pacific. “We want to make the company more competitive and successful by incorporating the latest technology, methods and industry practices,” said Paik. “We are also making changes in customer service, starting internally.”

Paik’s believes that good customer service starts from the inside. “How we treat employees and how they treat one another sets the tone for how we treat our customers.” This begins by making sure employees have access to the technology and training they need to be successful. It also means letting them know they are valued members of the company. Critical to this is creating a safe work environment, especially in the field, so they can return to their families whole and unharmed at
the end of the day. “Taken all together, this will make Grace Pacific a better, stronger, more competitive company,” he said. There is another side to Paik that speaks to the man himself.

For him, family is paramount, sharing a life with his wife of 50 years and raising four children — all now grown. Teaching, mentoring young people, and community service are his private passions. He co-founded the Mililani Judo Academy. He taught mathematics and management for 25 years at Hawaii Pacific University, where half his students were service members. Paik is himself a Vietnam veteran. He also serves on the board of directors of the Kapolei Chamber of Commerce, of which Grace Pacific is a founding member, and was a past president of the Building Industry Association, and chairman of the board for a local credit union.“Teaching, mentoring and community service are a way for me to give of myself. Knowledge is useless if not shared and learned by others.”

Originally posted in Kapolei Magazine