Alexander & Baldwin — the largest owner of grocery‑anchored neighborhood shopping centers in Hawaii, where it has a 155‑year history — has agreed to go private in a $2.3 billion merger, the largest commercial real estate portfolio deal in state history.
The transaction, a joint venture between Honolulu-based MW Group and investment funds tied to Blackstone Real Estate and DivcoWest, shifts control of roughly 4 million square feet of commercial space. A&B’s portfolio includes 21 retail centers, 14 industrial assets, four office properties, and fee interests in 146 acres of ground-lease assets.
It also marks the sale of the last remaining member of Hawaii’s historic “Big Five” companies, which once controlled sugar and wielded vast political influence in the Hawaiian Islands. A&B’s roots stretch back to 1870, when childhood friends Samuel T. Alexander and Henry P. Baldwin launched a sugar-growing partnership on Maui. The company incorporated in 1900 and evolved into a major real estate and development firm. In 1929, it built the Alexander & Baldwin Building, now a defining historic landmark in downtown Honolulu.
With the merger, A&B’s run as a publicly traded company will end. Its stock will be delisted from the New York Stock Exchange once the deal closes, expected in the first quarter of 2026 pending shareholder approval.
The joint venture is set to purchase all common shares for $21.20 per share in cash — a 40% premium to Monday’s closing price. The A&B board also approved a fourth-quarter dividend of 35 cents per share, payable Jan. 8 to shareholders of record as of Dec. 19. Under the merger terms, the final per-share payout will be adjusted to reflect that dividend.
New investment
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Local real estate experts say the deal represents both the end of an era and the beginning of a new phase of investment for Hawaii’s most prominent retail landlord. The investor group emphasized that A&B will keep its name, brand and Honolulu headquarters, and continue to be led by a Hawaii-based management team. They also pledged more than $100 million in property upgrades across the portfolio.
Mark Bratton, senior vice president at Colliers, said the move from public to private ownership should give A&B more flexibility and a longer investment horizon.
“It’s in great hands,” Bratton said. “Going from being a public company to private gives a lot more freedoms and longer investment horizons. I think it will be helpful.”
Bratton said the buyer group clearly sees “unlocked value” in A&B’s portfolio — a mix of high-quality, grocery-anchored centers and long-term ground leases that he described as “very desirable, very stable, very long term, safe, good stuff.”
He noted that A&B already has spent the past decade consolidating its focus locally, selling off mainland assets and “doubling down in Hawaii,” a strategy he expects will accelerate under private ownership.
Bratton pointed to A&B’s overhaul of Manoa Marketplace — once run down, now repositioned as a Class A center — as a preview of what deeper reinvestment could look like statewide. “From a consumer standpoint, it’s good news,” he said. “Expect not only upgrades but more acquisitions in Hawaii.”
Bratton said mergers often result in owners having more negotiating power, but that it is hard to tell how the deal will affect A&B’s current and future tenants as A&B’s portfolio was vast prior to the transaction.
Big deal
Mike Hamasu, consulting and research director for Colliers Hawaii, said the scale of the transaction is unprecedented.
“$2.3 billion is the largest for a commercial real estate portfolio,” Hamasu said. “In the 25 years that I’ve been doing this, I don’t remember anything that big.”
He compared it to the AustralianSuper acquisition of a partial stake in Ala Moana Center in 2015 and Blackstone’s 2018 acquisition of the Grand Wailea — both approximately $1.1 billion deals. He said the real estate holdings in the estate of Samuel Mills Damon went for more than $400 million.
“This is larger than all of them,” he said.
He said the deal makes the joint venture “one of the largest property owners in the state of Hawaii based on retail shopping centers, office buildings, industrial parks and properties. It will be quite an interesting opportunity for them.”
Hamasu said the deal likely reflects broader national trends: consolidation among commercial real estate owners, rising interest rates pushing real estate investment trusts (REITs) to rebalance portfolios, and investors seeking stable, long-term assets in uncertain economic conditions.
Hamasu noted that the combined ownership group brings a diverse set of strengths: A&B’s dominance in retail and industrial, Blackstone’s hospitality holdings, and MW Group’s senior living and office portfolios.
“It’s quite a diverse portfolio of prime properties in the state,” he said.
Era ends
Hawaii-based real estate consultant and analyst Stephany Sofos said the sale is historically significant.
“A&B is the last of the Big Five to be purchased,” she said, referring to the once-dominant companies that shaped Hawaii’s economy for more than a century: C. Brewer, Castle & Cooke, Amfac, Theo H. Davies, and A&B.
“It’s the end of an era.”
But Sofos emphasized that the joint venture includes familiar players with longstanding ties to Hawaii
“These are not players unknown to Hawaii,” she said. She also called it “critical” that A&B’s Honolulu headquarters and Hawaii‑based management team will remain in place.
Bratton said the acquisition price likely underscores how difficult it is for outside investors to assemble a meaningful portfolio in Hawaii, where there are barriers to entry.
He said the deal signals continued confidence in the state’s long-term fundamentals.
“It shows people still want to invest in Hawaii,” Bratton said.
Community dedication
A&B board Chair Eric Yeaman said in a statement that the deal provides “immediate and certain value” to shareholders while strengthening A&B’s ability to meet community needs.
“The board is confident that today’s news is in the best interests of all of A&B’s stakeholders. It delivers a substantial cash premium for shareholders and long-term benefits for our valued employees, tenants and communities,” Yeaman said
Lance Parker, A&B president and CEO, said in a statement, “As a private company supported by the deep real estate expertise and experience of our new ownership group, A&B will have greater capacity to serve its tenants and communities.”
MW Group CEO Stephen Metter said in a statement that the acquisition reflects a commitment to keeping stewardship rooted in Hawaii.
“As a Hawaii-grown company founded over 35 years ago, we have seen firsthand the community contributions and lasting value that Alexander & Baldwin has created across generations,” Metter said.
Blackstone, already a major player in Hawaii hospitality and retail, pointed to its investment history— including Grand Wailea, Turtle Bay, Hilton Hawaiian Village and Pearlridge Center — as evidence of its long-term interest in the islands.
David Levine, co-head of Americas Acquisitions for Blackstone Real Estate, said in a statement, “Our approach has always centered on operating responsibly and creating new opportunities for community members, including the more than 9,000 jobs created and supported by our investments in Hawaii.”
DivcoWest, a San Francisco-based real estate investment firm founded in 1993 by Stuart Shiff, has grown into a national, vertically integrated operator with offices in major innovation hubs and a portfolio spanning office, lab, industrial, retail, and multifamily assets while acquiring roughly 61 million square feet of commercial space to date.
Caleb Cragle, DivcoWest head of strategic investments, said in a statement,”Alexander & Baldwin has built an outstanding portfolio and we look forward to working with our partners and the company to help continue its success.”