Castle & Cooke buys HNL site
The company is establishing its first aviation center here
STORY SUMMARY »
Castle & Cooke Inc. is bringing its California aviation services arm to Hawaii.
The company announced yesterday that it has purchased the Circle Rainbow Building on Lagoon Drive, and plans to renovate it to provide aircraft service -- known as a fixed-base operation -- as well hangar and office space.
The company is targeting corporate flight departments, charter customers and aviation operators and individual aircraft owners.
Castle & Cooke, best known in Hawaii for its land holdings, has 28 years of experience in the aviation business, running one of the largest FBOs at Van Nuys Airport in Los Angeles.
"The aviation group has been interested in the Hawaii market for some time," said Bob Urquhart, vice president of commercial operations for Castle & Cooke.
There are two other FBOs on Oahu -- Bradley Pacific Aviation and Air Service Hawaii.
Castle & Cooke bought the property from a California lender that came by it in a bankruptcy.
It didn't disclose the purchase price, but said it plans to spend up to $6 million on renovations.
The new center will have more than 20,000 square feet of hangar space and 60,000 square feet of office space.
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Castle & Cooke, one of the state's top landowners, has begun constructing its first aviation service center in Hawaii by renovating the former Circle Rainbow building on Lagoon Drive.
The new center, known in the industry as a fixed-base operation or FBO, will encompass more than 20,000 square feet of hangar space and 60,000 square feet of Class A office space.
The aviation operations are expected to be open later this summer. Sixty percent of the building that will be available for office space is unfinished, however.
Castle & Cooke, which acquired the property at the end of May from a Northern California-based lender, said the fixed-base operation will offer a new alternative to the existing aviation businesses based at the airport.
Castle & Cooke's affiliated aviation company, which has been in the aviation business for 28 years, operates one of the largest general aviation facilities at Van Nuys Airport in Los Angeles. The Van Nuys facility currently hangars 45 private aircraft and flight departments.
"We are excited to bring this beautiful building back to life as a new fixed-based operation and are pleased to partner with the state to do so," said David Murdock, chairman and owner of Castle & Cooke.
Bar K LLC had been the lender-in-possession after ending up with the property in a bankruptcy. Castle & Cooke did not disclose the purchase price.
"The aviation group has been interested in the Hawaii market for some time and this is an opportunity," said Bob Urquhart, vice president of commercial operations for Castle & Cooke.
There are two other FBOs on Oahu -- Bradley Pacific Aviation and Air Service Hawaii.
The fixed-based operation will provide first-class office and renovated hangar space for corporate flight departments, charter customers and aviation operators, as well as individual aircraft owners.
FBO services will include aircraft fueling, maintenance, cleaning, catering, and other ground services for private aircraft.
Upon completion, the facility also will have a lobby and reception area, shower and restroom facilities, and a flight planning and coordination area with large conference rooms.
"We anticipate investing millions of dollars in renovations and interior modifications, which will add capacity to the busy Honolulu International Airport," said Castle & Cooke President Harry Saunders said.
Urquhart said the cost of the renovations likely will range from $5 million to $6 million.
"Castle & Cooke will add substantial value to the airport property, the aviation community and the state of Hawaii," said Barry Fukunaga, state Department of Transportation director. "We are pleased to have a strong tenant with a proven track record of success in development and particularly aviation services. Castle & Cooke is helping the state realize its vision of bringing top-quality facilities and tenants to the south ramp area."
The former Circle Rainbow building was built in 1993 on 3.2 acres of prime airport property. Planned improvements for the facility consist of office renovations, new parking lots and improved hangars. The adjacent taxiway provides access to the airport's runway.
