$200M Military Housing Portfolio on the Move
- Nov 11, 2015
Hunt Companies, Inc., has signed a definitive purchase agreement to acquire the entire portfolio of military housing assets from Forest City Enterprises, Inc., totaling nearly 15,000 units, for a reported $200 million.
The military housing installations to be acquired are the Air Force Academy, Colorado Springs, Col.; Air Force Southern Group which consists of four Air Force Bases at Arnold AFB, Tennessee, Charleston and Shaw Air Force Bases in South Carolina, and Keesler Air Force Base in Mississippi; Navy and Marine Corps Bases on Oahu, Hi.; military housing associated with three Naval Installations in the Puget Sound area of Washington state; and six military housing communities at Naval Station Great Lakes in Illinois, Naval Surface Warfare Center in Crane, Ind., and Navy-Mid-South in Millington, Tenn.
“We are pleased about the opportunity to combine our portfolios and military management expertise to expand our existing military housing portfolio,” Chris Hunt, Hunt Companies, Inc.’s CEO, said in a prepared statement. “The long duration of these contracts is expected to provide steady recurring revenues for over 40 years.”
According to Forest City Enterprises’ 2014 annual report, the portfolio brought in approximately $32 million in revenue last year.
The deal includes all equity interests and various service contracts.
Hunt anticipates the closing to take place in the 1st quarter 2016. Once the deal goes through, Hunt Companies will own more than 51,000 military housing units and manage over 32,000 units.