By Samantha Goldberg, Associate Editor
El Paso, Texas—Hunt Companies Inc. announced that it has signed a definitive agreement to acquire development and management company Forest City Enterprises, Inc.’s entire portfolio of military housing assets, including equity interests and service contracts.
Hunt Companies will add 15,000 units to its existing portfolio through this acquisition, increasing its total number of military housing units owned and managed to more than 32,000 and its owned unit total to more than 51,000. The company will acquire the Air Force Academy in Colorado Springs, Colo.; Air Force Southern Group, which includes four Air Force bases at Arnold Air Force base in Tennessee; Charleston and Shaw Air Force bases in South Carolina; Keesler Air Force base in Mississippi; Navy and Marine Corps bases in Oahu, Hawaii; military housing at three Naval installations in the Puget Sound area of Washington; and six military housing communities at Naval Station Great Lakes in Illinois; Naval Surface Warfare Center in Crane, Ind.; and Navy-Mid-South in Millington, Tenn.
“We are pleased about the opportunity to combine our portfolios and military management expertise to expand our existing military housing portfolio,” said Chris Hunt, CEO of Hunt Companies. “The long duration of these contracts is expected to provide steady recurring revenues for over 40 years.”
Forest City Enterprises received approval from the majority of its shareholders to convert from a C corporation to a REIT effective on Jan. 1, 2016, leading the company to cut debt and speed up the sale of some of its real estate in preparation for the shift.
Hunt Companies expects the acquisition will close in the first quarter of 2016, but it is subject to obtaining certain third-party consents and other closing conditions.