Benderson Development Buys Honolulu Retail Center

The 130,000-square-foot property located at 421 Alakawa St. sold for $60.3 million.

Updated on Oct. 21, 2026 in Commercial

Wide exterior shot of a low-rise commercial retail building with large windows, surrounded by tropical palm trees under a bright blue sky. — Benderson Development purchased a 130,000-square-foot retail center in Honolulu's Iwilei-Kapalama district from Alexander & Baldwin for $60.3 million. AI Illustration. Upload story photo >

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Benderson Development has purchased a retail center in Honolulu for $60.3 million. The property, currently anchored by Home Depot, spans 130,000 square feet on 9 acres of land.

Why it matters

The sale highlights significant value appreciation for commercial real estate in the area, as the property traded for 43.6 percent more than its previous sale price in 2019.

The property at 421 Alakawa St. features a two-story parking structure with over 600 stalls and sits within a designated Opportunity Zone. It sold for approximately $466 per square foot.

The players

Benderson Development

This is a major private real estate developer known for managing diverse commercial properties across the country.

Alexander & Baldwin

This is a Hawaii-based company that focuses on the ownership and management of commercial real estate and land assets.

Home Depot

This is a multinational home improvement retailer that operates a large chain of warehouse-style stores.

The details

The retail center originally opened in 1999 and was sold by Alexander & Baldwin. Home Depot remains the sole tenant occupying the facility within the Iwilei-Kapalama district.

1999: The retail center at 421 Alakawa St. opened.
2019: The property previously traded for $42 million.
October 2026: The sale of the Honolulu retail center occurred.

Culture Shift

The acquisition aligns with the Tax Cuts and Jobs Act's Opportunity Zone provisions, which incentivize capital investment in specific economically distressed regions. Investors continue to prioritize these zones to capitalize on long-term tax advantages for real estate holdings.

The change in ownership is unlikely to disrupt daily shopping routines for local residents since Home Depot remains the primary tenant. However, the site's location within an Opportunity Zone suggests that future site improvements or redevelopments could be prioritized by the new owner.

The takeaway

Commercial real estate investors are increasingly focusing on properties located within designated tax-advantaged zones. Local market participants should watch for potential redevelopment activities as new owners seek to maximize property value over time.