Marlton, NJ, April 28, 2009—Michaels Military Housing, part of the Michaels Organization, announced today that it has secured all necessary financing to move forward with the development of family housing community projects at two military installations in Arizona. The Michaels Organization, the U.S. Army, and Raymond James Financial Services completed an $82 million public bond sale to fund a $103 million, five-year development plan that includes the construction of more than 200 homes and a variety of community amenities at Fort Huachuca and the Yuma Proving Ground.
"We're very proud to have completed this financial closing within our desired timeframe, especially given the challenging conditions of today's financial markets," said Ron Hansen, senior vice-president of Michaels Military Housing. "To be able to secure this amount of financing in the current economic environment is a significant accomplishment," Hansen said. "We give credit to the U.S. Army and our financial team from Raymond James for their confidence and commitment to this project, which will enhance the quality of life for hundreds of military personnel and their families who call these two installations home."
A historic post founded in 1877, Fort Huachuca is now home to the U.S. Army Intelligence Center and School, U.S. Army Network Enterprise Technology Command/9th Signal Command (Army) and other Department of Defense organizations. Located at the base of the Huachuca Mountains in Sierra Vista, the post covers more than 70,000 acres and an estimated 16,000 people live and work there. The Yuma Proving Ground, originally established in 1943, is one of the largest military installations in the world and is an essential part of the Army's Test and Evaluation Command.
Fort Huachuca and the Yuma Proving Ground are two of the last privatization projects for the Army, which began partnering with private sector development and management companies to upgrade, operate, and maintain family housing on military bases after Congress authorized such partnerships in 1996. Michaels Military Housing commenced management of both posts on April 1.
One unique aspect of Michaels' housing development plan for Fort Huachuca and Yuma Proving Ground is that two local homebuilders, Castle and Cooke and RL Workman Homes, have been contracted for the project. According to Hansen, this is the first time a national developer has hired local homebuilders to work on a privatization project, and it is especially important for the creation of local jobs. In addition to the new homes to be constructed, the development plan calls for the renovation of 59 historic homes. Michaels Military Housing will also build two community centers and a variety of amenities, such as sports fields, dog parks, walking paths, and landscaped common areas.
About the Michaels Organization: Headquartered in Marlton, NJ, The Michaels Organization comprises seven integrated companies—including Michaels Development Company, Interstate Realty Management, and Michaels Military Housing— dedicated to excellence in affordable, mixed-income, and military housing. Since its founding by housing pioneer Michael J. Levitt in 1973, the Michaels Organization has developed, financed, or acquired more than 40,000 apartments, and currently manages 33,000 units in 26 states, the District of Columbia, and the U.S. Virgin Islands. Learn more about Michaels Military Housing at www.mmhusa.com.