SAN ANTONIO — Newtown Square, Pa.-based Balfour Beatty Communities has acquired an interest in Phase I and Phase II of a military housing privatization project at Lackland Air Force Base in San Antonio for approximately $142 million.
Phase I of the project consists of 420 housing units that were completed in 2000 by a prior developer. Phase II, which is still in the planning stages, will consist of an additional 363 housing units. Balfour Beatty will take over property management and operation responsibilities for Phase I. In addition, it will oversee the design, development, construction, renovation and management of the Phase II units as part of its agreement.
The project carries a 50-year term, and includes a 5-year initial development period for Phase II. Throughout this time, Balfour Beatty will earn management, construction/renovation and development fees, as well as returns on its invested capital.
The acquisition was completed by Balfour Beatty through the purchase of membership interests in Lackland Family Housing LLC, which was previously owned by Realm Holdings, Inc.
The Lackland Air Force Base project marks the 44th military base in the company’s portfolio. Balfour Beatty operates 17 military housing privatization projects and owns interests in Air Force family housing projects at eight other bases. Additionally, the company has partnered with the Department of the Navy for eight Northeast and 11 Southern naval bases, and has partnered with the Department of the Army for 11 military family housing privatization projects.