Navy Privatizes Housing at San Diego Base
Partnership raises more than $260 million
SAN DIEGO — Clark Realty Capital and affiliates of Bethesda, Md., and Lincoln Property Company of Dallas today announced that they have entered into a public/private joint venture with the Department of the Navy that will develop and manage military family housing for sailors and Marines in the San Diego region. The partnership has raised more than $260 million that will be immediately invested to improve the quality of life for San Diego military families.
As of August 1, the public/private partnership has taken over management and operations for 2,660 existing military homes and will commence construction of 1,400 new homes. This initiative will result in additional safe, high quality, energy-efficient, and well-managed housing being made available to Naval and Marine Corps families living in San Diego for the next 50 years.
The asset and property management of the portfolio will be handled by Lincoln Property Company, the nation's third largest manager of multifamily units. With over 35 years experience and a current portfolio with more than 100,000 units, Lincoln will bring their level of expertise, service and quality to military family housing. Lincoln recently completed Regents Court, a 251-unit luxury apartment community located at Regent and Nobel in the UTC/La Jolla area of San Diego.
The development, design, and construction of the 1,400 new units will be managed by Clark, one of the nation's premier developers of multifamily housing and the largest privately-held general building contractor in the country. Clark, which has been in existence for 100 years, is currently in joint ventures in San Diego to build the Padres stadium and to perform a $410 million seismic retrofitting of the Coronado Bridge.
"We look forward to playing a critical role in this unique privatization," said Cleve Johnson, a Managing Director with Clark. "The planned homes will be on par with the best the private rental market has to offer."
"This partnership is consistent with Lincoln's long-term commitment to luxury housing," explained Reg DelPonte, Senior VP and West Coast Partner. "The public/private venture program is a true benefit to the military community."
This partnership solicitation was conducted by the Commanding Officer, Southwest Division, Naval Facilities Engineering Command under Title 10 United States Code Chapter 169, Subchapter IV, Alternative Authority for Acquisition and Improvement of Military Housing, which provides a series of powerful authorities that allow the Department of Defense to work with the private sector, nationwide, to provide military family housing in key areas of need. Consulting support to the Navy was provided by Basile Baumann Prost & Associates Inc. of Annapolis, Maryland, lead by Project Director Tom Cole, vice-president. Financing for the project was provided by Bear Stearns. After 50 years, ownership of the property will revert back to the Navy.