Military Housing Privatization

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For more than a decade, Kutak Rock has cultivated a specialized practice in military housing privatization projects, all of which were financed with privately placed securities offerings or negotiated bank loans. Our team understands all aspects of military housing development, finance and servicing, and understand the transactions from every perspective. Our clients include investors, lenders, loan servicers, guarantors, developers, managers and consultants to various branches of the United States government. We have participated in more than 100 military housing privatization offerings having an aggregate principal amount exceeding $17 billion.

Military housing privatization transactions typically involve the long-term ground lease from the U.S. government of existing on-base residential neighborhoods and adjacent land coupled with the master-planned renovation, redevelopment and new construction of housing units. A typical project will include several thousand residential units, often at multiple sites across a number of jurisdictions. We have experience representing every material type of transaction party and have been, at one time or another, the primary counsel responsible for all aspects of review, negotiation, drafting, oversight of due diligence, acquisition, entitlement, planning, construction, subdivision, leasing, property tax, financing, joint venture development, historic preservation/cultural resource due diligence and negotiations with State Historic Preservation Officers and any affected parties, and environmental due diligence and remediation. Military housing privatization projects are located on military bases across the nation and generally involve the redevelopment of land that at one time was used by the military for industrial or munitions purposes. Kutak Rock has assisted in addressing the significant environmental contamination and mitigation issues which often impact such sites. Additionally, we’ve taken lead roles in addressing the complicated infrastructure issues, federal contracting laws and processes (including Davis-Bacon Act requirements), real estate title and survey concerns, state taxation and regulation issues that often arise in complex military housing privatizations. Finally, we’ve worked on all aspects of the capital markets transactions which have financed military housing privatizations, from addressing securities law issues to assisting in the preparation of disclosure documents and structuring and drafting loan and collateral documents. Our extensive experience allows us to proactively identify potential issues and suggest proven solutions.

Further, Kutak Rock has extensive experience working on the implementation and servicing of these projects and assisting entities in acquiring and restructuring underperforming transactions. Our experience in the implementation phase of military privatization projects continues to inform the advice we provide our clients in the earlier financing and structuring phases, and has resulted in transactions that not only close, but provide workable, balanced mechanisms for addressing the inevitable post-closing issues.