(Read more on the debt and equity markets and more on the multifamily market.)
WASHINGTON, DC-GMH Communities' military housing division has secured the necessary financing to support the development of an ambitious, multi-state $700-million project. Specifically, the funding will support the renovation or development of 4,269 housing units across 11 Navy bases in five states in the southeast, as GlobeSt.com previously reported.
The $700 million in development costs covers the first six-year phase of the 50-year term project, which is one of the largest public-private venture housing initiatives to date, according to Bruce Robinson, president of the company's military housing division.
The locations are: Naval Weapons Station, Charleston, SC; Naval Submarine Base, Kings Bay, GA; Naval Air Station, Jacksonville, FL; Naval Station, Mayport, FL; Naval Air Station, Key West, FL; Naval Support Activity, Panama City, FL; Naval Air Station, Pensacola, FL; Naval Air Station, Whiting Field, FL; Naval Construction Battalion Center, Gulfport, MS, Naval Air Station, Meridian, MS, and Naval Air Station Joint Reserve Base, Fort Worth.
Securing financing, usually in five- to 10-year phases, has become rite of passage in these public-private military housing ventures ever since Congress authorized the 1996 Military Housing Privatization Initiative. The act gave the Department of Defense and the Department of the Navy the wherewithal to leverage the military's family housing assets with private sector investment.
It can be a plum mandate for the private sector firm--which receives its compensation in the form of management, construction/renovation and development fees, as well as equity returns on its invested capital. GMH Military Housing operates 12 military housing privatization projects, and previously has partnered with the Department of the Army for its military family housing privatization.
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Erika Morphy
Erika Morphy has been writing about commercial real estate at GlobeSt.com for more than ten years, covering the capital markets, the Mid-Atlantic region and national topics. She's a nerd so favorite examples of the former include accounting standards, Basel III and what Congress is brewing.
