Business Park Planned Along Farrington Highway
One California-based company is convinced that Kapolei is a future business hub. Jupiter Holdings, an early investor in Kapolei Business Park, now plans to build a business park along Farrington Highway, between Kualakaʻi Parkway and Ft. Weaver Road.
The business park will go on 57 acres that Jupiter Holdings is buying from homebuilders D.R. Horton. Aloun Farms has been leasing the land from D.R. Horton. Their headquarters, plus a fruit packing barn, are on the site. They hope to stay there by buying some of the land back from its new owners.
This Will Join The Other Big Kapolei Business Parks
Buildings at Kapolei Business Park, which is along Kalaeloa Blvd. between Campbell Industrial Park and Costco, began sprouting up in the early 2000s.
In 2015, lots in Kapolei Business Park Phase 2 went on the market. The park is nearly sold out. A few structures are already up. A warehouse for Medline Industries, a distributor of hospital supplies, is among them.
Lots in Kapolei Business Park West, which is across Kalaeloa Boulevard from Phase 1 and Phase 2, went on sale in 2018. About half are spoken for. As roads for the lot were completed earlier this year, we could see some new buildings going up there soon.
Why So Many Business Parks?
West Oʻahu business parks have proven to be good business. This is one of the few places on the island with enough open land for structures like warehouses, distribution centers, and the like.
When Kapolei Business Park went on the market in 2004, rents were approximately $13 per square foot. 15 years later, asking prices for the new Kapolei Business Park West are more than $40 per square foot.
Alexander & Baldwin, the former sugar cane behemoth, used part of the money it got from selling former sugar cane land on Maui to buy business park land in Kapolei. The $262 million sugar cane land sale went through in December 2018. A month later, A&B spent $40 million to buy two Kapolei Business Park warehouses.
High demand for commercial space at Oʻahu business parks is what’s driving the building and investing boom, according to William Froelich, an executive at commercial real estate firm Collier’s International. And we probably aren’t at full capacity yet.
Construction Planned for 2020
Jupiter Holdings has said they plan to start construction on the business park by the end of next year.
The business park won’t take up all of the land — Aloun Farms told Andrew Gomes of the Star-Advertiser they hope to buy a section of the land so they can stay there.
So it’s unclear just how big the business park will be. We’ll update this post when the builders start applying for plans/permits.