Air Force selects FCMC to privatize Keesler housing

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Published: September 1,2010

Tags: housing, military, real estate

BILOXI — The U.S. Air Force has selected Forrest City Military Communities, LLC (FCMC) as the highest ranked offeror (HRO) in its effort to privatize military family housing at four installations in the continental United States: Keesler AFB in Biloxi, Shaw AFB in South Carolina, Charleston AFB in South Carolina and Arnold AFB in Tennessee.

The Air Force Southern Group Housing Privatization (HP) Project is a deal valued at $291 million in development costs and will demolish and build hundreds of housing units over the next four years.

Under the deal, the Air Force will lease 316 acres of land at Keesler AFB as part of a 50-year transaction and convey 1188 existing housing units and other improvements to FCMC. At the four installations combined, the Air Force will lease a total of 846 acres of land and convey 2,387 existing housing units.

At the other group bases, FCMC will by the end of the three-year initial development period, demolish 972 existing inadequate housing units and construct 770 new housing units. FCMC will continue to operate and maintain a portfolio of 2,185 housing units across the four bases for a 50-year term.

Assuming the Air Force and FCMC reach successful closing, in early 2011 the existing houses at all four installations will become property of FCMC who will own and operate the rental housing development for military families. They will finance, plan, design, and construct improvements in the development and maintain the housing units the duration of the 50-year lease period.

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