The agreement begins with a five-year initial development period that includes the design, construction and/or renovation of the 2,875 units located at Atlus Air Force Base in Atlus, OK; Luke Air Force Base in Glendale, AZ; Sheppard Air Force Base in Wichita Falls, TX; and Tyndall Air Force Base in Panama City, FL. GMH also assumes overall management, maintenance and operational responsibilities for the housing in those locations for the full 50 years.

Approximately $337.1 million will be expended over the five-year initial development period. That funding, a spokeswoman for GMH says, "comes from a combination of private debt, subordinated Air Force debt, private equity, interest earnings and excess cash flow. Although we begin construction and renovation immediately, not all of the funding is spent immediately, which accounts for the interest earnings.

"Our earnings come from property management fees, development fees and return on invested capital. The Air Force's basic allowance for housing to military residents goes back into the project over the term of the agreement. Throughout the 50-year term, we are constantly renovating and replacing the housing as well as the roads, community centers and other amenities, in the same way a private multihousing complex would be maintained and operated.