The Navy's new partnership is with Lincoln/Clark, a joint venture between Lincoln Property Co. of Dallas and Clark Realty Capital of Bethesda, Md. Lincoln/Clark is developing and managing military family housing for sailors and Marines in the San Diego region.

The partnership has raised more than $260 million for the project that proponents say will improve the quality of life for the thousands of military families confronting long commutes and rents beyond the reach of enlisted personnel. "The economy in San Diego moves faster than the housing allowance,'' says Bob Griffin, director of acquisitions for the Naval Facilities Engineering Command.

The largest initiative yet between the military and private developers -- and the first of this size for the Navy -- the venture is now managing 2,660 existing family housing units, building the 500 new townhomes at the Naval Training Center and replacing 812 existing units at Cabrillo Heights in Serra Mesa with 900 new units.