First Hawaiian Bank buys property in Kalihi for $14M
First Hawaiian Bank
has purchased an industrial property adjacent to the old Foremost Dairies-Hawaii processing plant in Kalihi for $14.2 million.
The bank bought the 115,000-square-foot property at 2323 Kamehameha Hwy. on March 31 from Lenakona Development Ltd.
First Hawaiian, which purchased an adjoining 135,000-square-foot parcel from Lenakona in 1991 for about $9 million, plans to consolidate both properties for future expansion, according to Brandt Farias, executive vice president for marketing and communications.
The bank hasn't determined whether it will use the property for additional office space, parking or other uses, he said.
First Hawaiian currently has an existing facility for administrative functions, including data-processing operations, on part of the property. Airgas Gaspro Corp. is the sole tenant on the newly-purchased site.
"Our preference is to own our major branch and administrative properties," Farias said. "That dates back a lot of years to previous management teams that believed in owning versus leasing properties. Obviously, given the appreciation in Hawaii real estate, that practice has boded well for us."
First Hawaiian owns the fee on roughly half of its 63 branches in Hawaii, Guam and Saipan, he said.
Original Gaspro founder Allan Renton began buying land in the area in the 1930s for his industrial gas company, according to his grandson Allan D. Renton, Lenakona vice president.
Gaspro was sold in 1980 to Airco Inc., a subsidiary of BOC Group Inc., which was later bought out by Airgas Inc. Airgas Gaspro is no longer affiliated with Lenakona Development.