One of Hawaii’s largest infrastructure companies engaged in road paving, rock quarrying and other things has been acquired by local construction firm Nan Inc.
Nan bought Grace Pacific LLC from Honolulu-based real estate company Alexander &Baldwin Inc., a former major property development firm that in recent years has focused on owning and operating Hawaii shopping centers.
A&B reported selling Grace for $57.5 million. The deal was completed Wednesday.
A&B also said it sold a 50% interest in Maui Paving LLC that was held by Grace on Nov. 6 to an affiliate of Maui construction firm Goodfellow Brothers, GBI Holding Co., for $2.5 million.
The Grace business sold to Nan includes a 200-acre rock quarry in Makakilo, asphalt and concrete production plants on Oahu, quarry land on Maui and statewide road paving operations.
Grace, which has about 450 employees and is the biggest paving contractor in the state, claims to have built or maintained nearly 100% of Hawaii’s roads.
The paving and construction materials company was established in 1931. A&B bought the firm in 2013 for $235 million, but has struggled in recent years with financial operating losses from Grace. In 2019, A&B slashed the value of Grace by $78 million, and in 2022 began formally trying to sell the business.
“The sale of Grace Pacific marks the culmination of A&B’s simplification strategy, allowing us to sharpen our focus on our core business as the preeminent commercial real estate company in Hawaii,” Lance Parker, A&B president and CEO, said in a statement.
A&B is the second-largest retail property owner in Hawaii. Properties owned by the company include most of the commercial core of Kailua, Kaneohe Bay Shopping Center, Aikahi Park Shopping Center, Pearl Highlands Center, Manoa Marketplace, Waianae Mall, Kunia Shopping Center, Waipio Shopping Center, Laulani Village, Kahului Shopping Center, Pu‘unene Shopping Center, Lanihau Marketplace, Shops at Kukui‘ula and Queens’ MarketPlace.
Parker said the sale of Grace is another milestone in A&B’s evolution but also facilitates a path for success and growth of Grace under the stewardship of Nan.
“We are thrilled to welcome Grace Pacific to the Nan Inc. family,” Nan Chul Shin, founder and owner of Nan, said in a statement.
Shin said the acquisition allows Nan to enhance its service offerings, and that Grace will have its well- established brand, management team and staff remain in place.
Nan was established in 1990 as a small contractor and now claims to be the largest locally-owned construction firm in Hawaii. Nan’s projects have included government buildings, city rail stations, highway improvements, a wastewater treatment plant, hotel renovations and single-family homes. The company also is developing The Park on Keeaumoku, a twin-tower condominium project near Ala Moana Center.
