Pan American Airways commissioned the building to house its Martin M-130 and Boeing 314 flying boats, which operated the first scheduled transpacific passenger service from San Francisco to Manila and Auckland. The hangar's enormous clear-span interior was designed to accommodate aircraft with wingspans exceeding 100 feet. When the Golden Gate International Exposition needed exhibition space, the hangar was converted into the Palace of Fine and Decorative Arts, its industrial volume filled with painting, sculpture, and decorative art from around the world.

The 1939-1940 exposition showcased San Francisco's ambitions as a Pacific Rim city, and the Palace of Fine and Decorative Arts was one of its most impressive venues. After the fair, the Navy took over Treasure Island and the building returned to military use. Its subsequent history reflects the island's broader trajectory: military base, decommissioning, environmental cleanup, and eventual redevelopment.

The building's significance lies in its architecture -- a massive Art Deco hangar that demonstrated how industrial structures could be repurposed for cultural use. The clear-span interior, designed for aircraft maintenance, created exhibition spaces of a scale that purpose-built galleries rarely achieve. The building survives on Treasure Island, awaiting the next chapter in an improbable history that has already included flying boats, fine art, and the United States Navy.