Alexander & Baldwin Sells Honolulu Home Depot Ground Lease to Benderson Development for $60.3M

JLL Capital Markets announced Nov. 10 the $60.3 million sale of the fee simple interest in the Home Depot ground lease at 421 Alakawa St. in Honolulu. Alexander & Baldwin sold the property to Benderson Development, with JLL representing the seller, the firm said.

The property spans approximately nine acres in Honolulu's Iwilei district and is occupied by Home Depot U.S.A. Inc. under a long-term absolute NNN lease with renewal options.

Property Details of the Honolulu Home Depot Ground Lease

The site, identified as Honolulu Home Depot Store No. 1701, was built in 1999. It includes a 129,494-square-foot Home Depot store and an adjacent 110,479-square-foot, two-story parking structure. The property is 100% leased to Home Depot.

The sale price equates to roughly $466 per square foot of store area, or about $465,000 per acre based on the nine-acre site. The per-square-foot figure does not account for the parking structure or the land position.

The transaction involved the fee simple interest in a ground-leased property rather than the sale of an operating business. Home Depot remains the tenant, while Benderson Development acquired the underlying real estate interest and its rent stream.

Iwilei Location and Transit Access

The property is in Iwilei, which JLL described as one of Honolulu's most strategically positioned urban districts, situated between Downtown Honolulu, Honolulu Harbor and Daniel K. Inouye International Airport.

The site is adjacent to the future Kūwili Skyline Station, part of Honolulu's expanding rail system, and sits within an area targeted for significant mixed-use redevelopment. JLL said continued public and private investment in the surrounding district is expected to further enhance connectivity and accessibility over the long term.

JLL said the property serves a broad consumer base across Oahu and sits in one of the nation's most supply-constrained real estate markets. Honolulu's employment base is supported by government, military, healthcare, transportation, tourism and professional services industries, the firm said.

Benderson Development Expands Into Hawaii

Benderson Development said the acquisition marks its expansion into Hawaii. The company reports a portfolio of more than 1,000 properties totaling over 58 million square feet across 41 states, and describes itself as one of the largest privately held real estate companies in the country, with more than 75 years of experience.

JLL said the asset offers a combination of scale, long-term tenancy and an infill location that is uncommon in the Honolulu market, where net lease opportunities of this size are limited.

Net Lease Market Context

Absolute NNN lease structures generally shift operating and capital expenses to the tenant, giving the owner a relatively predictable income stream with limited landlord-level obligations. Value in such deals remains sensitive to lease duration, renewal probability and tenant credit. Home improvement retailers such as Home Depot typically serve both household consumers and professional contractors.

Honolulu's limited supply of developable land makes a nine-acre, fully occupied retail site difficult to replicate. The pending Kūwili Skyline Station and planned redevelopment in Iwilei may also bear on accessibility and surrounding land values over time.

JLL's Capital Markets group provides services including investment sales and advisory, debt advisory, net lease and equity and fund placement, with more than 3,000 specialists in offices in nearly 50 countries. JLL (NYSE:JLL) reports annual revenue of $26.1 billion and operations in over 80 countries.

Sources

JLL newsroom: JLL Capital Markets arranges $60.3M sale of Honolulu Home Depot ground lease