Hunt and Pinnacle Announce Sale of Joint Privatized Family HousingPrint this Page
March 29, 2011
El Paso, TX - American Management Services and its affiliates (“Pinnacle”) and Hunt Companies, Inc and its affiliates (“Hunt”) have concluded negotiations that would transfer all ownership and development responsibilities for the Pinnacle/Hunt jointly owned privatized military housing owned by BLB Privatized Housing LLC, AETC II Privatized Housing LLC and Falcon Group to Hunt and to transition the property management from Pinnacle to Hunt over the next 3 months.
Pinnacle and Hunt jointly own, develop and operate approximately 10,000 units of Military Housing Privatization Initiative (“MHPI”) family housing. This transaction involves 13 military projects and a total of over 8,000 homes on military installations at Columbus Air Force Base, Mississippi; Goodfellow Air Force Base, Texas; Laughlin Air Force Base, Texas; Maxwell Air Force Base, Alabama; Randolph Air Force Base, Texas; Vance Air Force Base, Oklahoma; Barksdale Air Force Base, Louisiana; Langley Air Force Base, Virginia; Bolling Air Force Base, District of Columbia; Moody Air Force Base, Georgia; Patrick Air Force Base, Florida; Little Rock Air Force Base, Arkansas; and Hanscom Air Force Base, Massachusetts.
The negotiated transfer of responsibility is part of a business arrangement between the two partners as a result of each company’s efforts to respond to changing real estate and capital markets environments and the recognition that Pinnacle and Hunt desire to pursue short and long term investment and business opportunities independently.
Pinnacle and Hunt are deeply committed to the MHPI program and to the military members and the families that they serve. Pinnacle will continue to pursue future MHPI opportunities and continues to improve its services platform, increase the amount of capital and resources dedicated to supporting the MHPI programs, and attracting and retaining the country’s brightest real estate and management professionals with serving military families in mind. Hunt with this acquisition will consolidate its position as one of the industry leaders in the provision of privatized housing for all branches of the military and its commitment to long term investment in and serving the broader real estate and development needs of the Department of Defense.
After the completion of this transaction, Pinnacle will continue to own and operate more than 10,000 MHPI units and is pursuing opportunities to expand the portfolio based on Pinnacle’s refined, owner-operator approach to MHPI development. Hunt, through this transaction, will have an ownership interest in 33,980 homes within MHPI. Of those, Hunt will now directly manage 15,581 units through its integrated full–service approach to project management and operation. Hunt and Pinnacle will continue to compete with each other and other industry participants in other MHPI opportunities.
“This acquisition is in line with our strategic objective of strengthening our integrated approach to development, property and asset management and construction and providing the highest-level of customer service and standard of home to our military service members and their families,” said Robin Vaughn, Co-President, Hunt Development Group - Public Private Partnership Division. “And we look forward to ensuring the transition is a positive one and we pledge to continue to find ways to deliver excellent customer service and quality communities to our Air Force families.”
Founded in 1947, Hunt Companies, Inc. has become a leading national privately-owned real estate investor, manager, developer, and contractor. Hunt’s focus and experience is in sectors such as public-private partnerships, military housing, mixed-use, multi-family housing, master-planned communities, government build-to-lease programs, retail, and office. The services Hunt provides to these sectors include Investment Management, Development, Construction Services, and Asset and Property Management Services.
Hunt and its affiliates have $9.98 Billion Assets Under Management. These assets include 65,000 Multi-Family Housing units, 5.7 million square feet of commercial, 1 million square feet of industrial and 3.7 million square feet of retail. Hunt’s expertise is also comprised of 90,000 housing units built, thousands of acres of land developed, and over 400 projects completed in 32 states. Development project costs have been in excess of $6.3 billion, with over $7.8 billion in construction costs. Hunt’s 2010 gross revenue was over $900 million.
Hunt affiliates include Hunt Building Company, Hunt Development Group, Hunt Communities, Hunt Military Communities, TRECAP Partners, Hunt Capital Partners, and LEDIC Management Group. Hunt Companies, Inc is headquartered in El Paso, TX with regional offices in Washington, D.C; Albuquerque, NM; Honolulu, HI; Los Angeles, CA; Chicago, IL; Philadelphia, PA; and Memphis, TN. For more information, visit www.huntcompanies.com.
The Pinnacle Family of Companies is a global real estate provider, specializing in strategic investments, development and management of multifamily residential communities. As the nation’s largest third-party manager of multi-family housing; Pinnacle’s portfolio is valued at $22 billion, includes more than 150,000 residential units, which includes 22,000 privatized military units, and 15 million square feet of commercial assets. With the Corporate headquarters located in Dallas, Texas, Pinnacle has over 40 Regional and field offices with 4,200 employees located in seven countries, 42 states, and 250 cities worldwide. For more information, visit www.PinnacleFamily.com
Congress established the Military Housing Privatization Initiative in 1996 as a tool to help the military improve the quality of life for its service members by improving the condition of their housing though the use of public‐private partnerships. The MHPI program was designed and developed to attract private sector financing, expertise and innovation to provide necessary housing faster and more efficiently than traditional Military Construction processes would allow. The Office of the Secretary of Defense has delegated to the Military Services the MHPI and they are authorized to enter into agreements with private developers selected in a competitive process to own, maintain and operate family housing via a 50‐year lease. MHPI is commonly viewed as one of the most successful public‐private partnership models in the United States.