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Project privatizes 4,540 family homes at Minot, Grand Forks, Cavalier, Ellsworth, Mountain Home and Cannon Air Force Bases
NEWTOWN SQUARE, PA --- August 1, 2013 – Balfour Beatty Communities, LLC, a leading provider of property management, development and related real estate services for the multifamily, military, and student housing markets, announced today it has reached financial close on the Northern Group Housing Privatization Project with the U.S. Department of the Air Force. The project privatizes family housing across six Air Force bases, including Minot AFB, Grand Forks AFB and Cavalier AFS, each located in North Dakota; Ellsworth AFB, located in South Dakota; Mountain Home AFB, located in Idaho; and Cannon AFB, located in New Mexico.
The six-year initial development period, valued at approximately $442 million, will include the design, construction and/or renovation of 4,546 end state housing units with various amenities. Balfour Beatty Communities will manage all development, operations and maintenance, property management, construction, renovation, and demolition services. The company’s key partners on the project will include Balfour Beatty Construction, which will provide new construction services, and Niles Bolton Associates and Woolpert, which will provide architecture and engineering services, respectively.
This is Balfour Beatty Communities’ sixth Air Force housing privatization project. Balfour Beatty also manages AETC Group I (Altus, Luke, Sheppard and Tyndall AFBs); Vandenberg AFB, CA; AMC West (Fairchild, Tinker and Travis AFBs); Lackland AFB, TX; and Western Group (Beale, F.E. Warren, Malmstrom and Whiteman AFBs).
"We are thrilled to expand our relationship with the Air Force and bring quality housing and world-class customer service to the military members and their families residing at these bases,” said Chris Williams, President of Balfour Beatty Communities. "With the Northern Group project, our military portfolio has increased to encompass 53 Army, Navy and Air Force installations across 25 states and Washington, D.C. We are very proud of the leadership position our team has achieved in the privatization of military housing and look forward to delivering on our commitments in this sector for many years."
Congressionally authorized since 1996, the Military Housing Privatization Initiative allows the Department of Defense and the Department of the Air Force to work with the private sector to upgrade the quality of family housing and operate and maintain that housing. The family housing assets are typically leveraged with private investment to accomplish housing construction and renovation goals faster and at a lower cost than military construction.