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This is a middle step in the process of obtaining the contract to design and construct 5,501 end-state housing units on the bases. "We are still negotiating the financial components with the Department of the Navy, which should be completed over the next couple of months," a GMH spokeswoman tells GlobeSt.com.

As with other public/private ventures under the military's privatization housing programs, funding comes from a combination of private debt; subordinated debt from the military service, which in this case is the Navy; private equity; interest earnings and excess cash flow. Not all of the funding is spent at the start of construction, which accounts for the interest earnings.

This represents one of the largest public/private-venture military housing initiatives to date. It is for a 50-year term that begins with a six-year initial development period that is valued at in excess of $700 million.