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US FBO network Modern Aviation has closed the acquisition of certain leasehold improvements at Centennial airport in Denver, Colorado from The SunBorne Companies.
The leasehold improvements include a 62,000 sq ft three storey office building which houses several tenants, including the Signature Flight Support FBO terminal, and a 38,000 sq ft hangar complex primarily leased by Signature for its FBO operation. The acquisition also includes a ground sublease on 318,652 sq ft of land underlying the properties and parking.
As part of the acquisition, Modern will take over the FBO currently operated by Signature Flight Support at the expiration or earlier termination of its operating agreement. This would enable it to consolidate the entire south side of Centennial airport under Modern's FBO operation and give it the largest FBO footprint at the airport.
“We are very excited about acquiring these properties. Centennial Airport is a top three general aviation airport, based on general aviation aircraft operations, that is expecting to continue to grow well into the future,” says Mark Carmen, Modern's CEO. “This transaction enables Modern to increase its footprint in the near term by adding significant rental income to its current operations. But we are most excited about the longer-term opportunity to expand our FBO operation by consolidating the two current FBOs at Centennial airport.
“We've been seeking opportunities to grow our operation at Centennial airport since our original FBO acquisition there in November 2018. In September, we passed an important milestone in our growth plan when we broke ground on our expansion project to add 52,000 sq ft of hangar space, 4,000 sq ft of attached office space, a 7,000 sq ft new FBO terminal and 135,000 sq ft of new ramp,” continues Carmen.
This acquisition is in addition to Modern Aviation's purchase of Sheltair's New York FBO chain and Hill Aviation's Puerto Rico FBO last month.