News | Press Releases | Immediate Release



August 29, 2002 For More Information:
Catherine Bowie 831.372.2259/cbowie@armanasco.com
Partnership to Develop Military Housing Celebrated at Fort Ord


Partnership to Develop Military Housing Celebrated at Fort Ord
SEASIDE, Calif. — A signing ceremony was held today in recognition of the recent partnership formed between the U.S. Army, U.S. Navy and Clark Pinnacle Family Communities LLC to create a plan to renovate, replace and construct military family housing communities for the Presidio of Monterey (POM) and the Naval Postgraduate School (NPS). The planned development, located at the Ord Military Community at former Fort Ord and La Mesa Village off Aguajito Road in Monterey, will consist of approximately 2,000 new and replacement housing units intended to serve the 4,000 plus population of service members and their families assigned to POM and NPS. Speakers at the signing ceremony included District Director of Congressman Sam Farr's office, Alec Arago; Deputy Assistant Secretary of the Army Privatization and Partnerships, Mr. William A. Armbruster; POM Commander, Col. Kevin Rice; NPS Superintendent Rear Adm. David Ellison; President of Clark Realty Builders, Glenn Ferguson and Pinnacle President and CEO, Stan Harrelson.

"This project will improve quality of life for Soldiers, Sailors, Marines, Airmen, Coast Guardsmen and their families," said Ferguson. "We believe it will benefit the entire Monterey Bay community and serve as the benchmark by which all future military privatization will be measured."

The planned housing project is part of the Army's Residential Communities Initiative (RCI) program, enacted by Congress in 1996 with the Military Housing Privatization Act, which allows the military to obtain private sector capital and expertise to develop, manage and improve military family housing. Over the next five months, Clark Pinnacle Family Communities in partnership with the Army will develop a Community Development and Management Plan (CDMP) which will be submitted to the Department of the Army and Congress for approval. Project implementation is expected to begin in the spring of 2003. Development of the POM and NPS is the Army's sixth RCI project, and the first joint RCI venture with the Army and Navy.

Clark Pinnacle Family Communities LLC is a joint venture between Bethesda, Md.-based Clark Realty Capital and Seattle-based Pinnacle. Architectural firm Torti Gallas and Partners, Silver Spring, Md., will design the housing. Clark Realty Capital is also currently a joint venture partner in a separate $260 million public-private venture (PPV) with the Navy to relieve the military housing shortage in San Diego.

Under the proposed POM and NPS military housing plan, Clark Realty Capital will design and build approximately 2,023 new homes and renovate approximately 41 historic homes over a seven-year construction period. The total duration of the contract is 50 years and includes superior property management provisions for the continued upkeep and maintenance of the high quality, energy and water efficient housing. Current estimates expect approximately $420 million in private sector debt and equity will be spent in the local community during the initial development phase of the project.

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