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Alvarez & Marsal Real Estate Advisory Services professionals have advised on Enhanced Use Leasing ("EUL") engagements for the U.S. Army Corps of Engineers, U.S. Navy, U.S. Air Force and U.S. Marine Corps:

Yuma Proving Ground, Yuma, Arizona

The U.S. Army Corps of Engineers (“USACE”) hired Alvarez & Marsal to assist in competitively selecting a private developer to lease approximately 2,400 acres of land to be developed as a hot weather testing facility at Yuma Proving Ground (“YPG”) in Yuma, Arizona. YPG was established in 1952 as the Army’s Desert / Hot Weather Climatic test site. YPG is located 26 miles north of Yuma, Arizona, along U.S. Highway 95 and 180 miles west of San Diego, California. The installation covers nearly 840,000 square miles with climate and terrain similar to desert areas worldwide.

In June 2007, the Army signed a lease for this site with General Motors for 50 years, plus two 25-year options. GM will build and operate a $100 million joint-use vehicle testing facility on the site and pay the Army $10.6 million to build additional facilities for testing heavy military vehicles. GM’s goal is to replace its test track in Mesa, Arizona, with a stand-alone facility on the Yuma site, which has restricted air space that will assure privacy for the manufacturer.

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Selfridge Air National Guard Base, Macomb County, Michigan

Selfridge Air National Guard Base (“Selfridge ANGB”) is located in Macomb County, Michigan, approximately 25 miles northeast of Detroit. Approximately 500 acres of developable land plus the 18-hole golf course (estimated at 175 acres) is being considered for EUL. The EUL sites include three zones, generally identified as the land along the east and south elevations of the base. The three sites are possible development opportunities for an active adult community (military retirees), an office / R&D park, a light industrial/warehouse complex, the operation of the 18-hole golf course and an option to renovate and expand Lufbery Hall.

The U.S. Air Force and the U.S. Army Corps of Engineers have released the Final Notice of Intent to Lease and the deadline for RFQ submittals is August 27, 2007. For more information, visit: http://eul.army.mil/selfridge/

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Saufley Field, Escambia County, Florida

The U.S. Navy is sponsoring an EUL opportunity at Saufley Field near Pensacola, Florida. Saufley Field is located in Escambia County, Florida, the most western county in the Florida panhandle, which is nine miles Northwest of downtown Pensacola and 12 miles north of Pensacola NAS. The installation sits on approximately 866 acres with over 70 buildings total 546,598 square feet of space. There are two inactive 4,000 foot runways on the north side of the installation.

The designated EUL sites at Saufley Field consist of a total of approximately 104.5 acres with 546,598 square feet of improvements. The primary area under consideration is 85.8 acres on the south side of Saufley Field (“Site 1”). The highest and best use of Site 1 is office and industrial use, with some of the existing structures providing contributory value. The second site, located just south of the perimeter of the installation, contains approximately 18.7 acres (“Site 2”) and is currently operated as a nine-hole, pitch-and-putt golf course.

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Cape Canaveral Air Force Station, Florida

The U.S. Air Force hired Alvarez & Marsal to facilitate an EUL program opportunity at Cape Canaveral Air Force Station. The Air Force specifically sought a private partnership for a 100-acre underutilized real estate parcel that included 4,950 linear feet of industrial waterfront for lease at Cape Canaveral Air Force Station (“CCAFS”), Florida. The CCAFS port area has served as the Air Force’s port of entry for the Evolved Expendable Launch Vehicle (EELV) program. A commercial development of the EUL asset, which includes general port operations such as office, warehouse, storage, cargo or cruise ship passenger terminal(s), would be compatible with operations on the installation.

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Camp Navajo, Bellemont, Arizona

The U.S. Army Corps of Engineers (“USACE”) hired Alvarez & Marsal to assist in competitively selecting a private developer to lease 810 acres of land at Camp Navajo. Located in Bellemont, 12 miles west of Flagstaff in north-central Arizona, Camp Navajo, formerly the Navajo Depot Activity, is a Department of Defense (“DoD”) facility operated by the Arizona National Guard (“AZNG”) as a National Guard training site and storage depot.

Camp Navajo was established as Navajo Ordnance Depot in 1942. The original mission called for storage of ammunition in support of the Pacific Theater of operations during the Second World War. In 1993, the Department of Defense discontinued the U.S. Army federal ammunition mission at the Navajo Depot Activity and licensed the installation to the AZNG. The real estate and many of the buildings continue to be owned by the U.S. Army. The installation’s current missions are to: (1) operate a National Guard training site; (2) provide command and control of the AZNG force structure in northern Arizona; and (3) provide depot-level storage services to various DoD customers.

The Camp Navajo EUL opportunity is currently in negotiations with a private developer. For more information, visit: http://eul.army.mil/navajo/

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Fort Huachuca, Sierra Vista, Arizona

The U.S. Army Corps of Engineers (“USACE”) hired Alvarez & Marsal to assist in competitively selecting a private developer to lease a 203-acre vacant site within the boundaries of the Sierra Vista Municipal Airport / Libby Army Airfield at Fort Huachuca in southern Arizona. The site is being made available for mixed-use office and light industrial development, possibly including hangar development, under the U.S. Army’s enhanced use leasing program. Located on the eastern edge of Fort Huachuca in proximity to the City of Sierra Vista and about 75 miles south of Tucson, the site is level, cleared, has no known environmental or unexploded ordinance issues, and offers excellent access to the main highway. The City of Sierra Vista has expressed interest in the site being developed for general aviation facilities, an aircraft conversion facility, and federal agencies. The USACE has also indicated interest in the Fort Huachuca site being redeveloped to enable it to accommodate the needs of the Border Patrol and other purposes, including a training facility.

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Portsmouth Naval Shipyard, Kittery, Maine

Alvarez & Marsal was retained by the U.S. Navy to perform a market and feasibility study for a potential EUL at the Portsmouth Naval Prison, located at Kittery, Maine. The analysis evaluated the potential economic benefit to the Navy from an EUL at the Portsmouth Naval Prison. Portsmouth Naval Prison is a 257,000 square foot multi-story steel, reinforced concrete and masonry structure that bears resemblance to a castle in appearance. It is located at the southern end of the Portsmouth Naval Shipyard near the Maine and New Hampshire border and is approximately 50 miles north of Boston. The building has been vacant since 1974 and will require various repairs, but the structure of the building is very solid with no major defects. The original facility was built in 1908 and major extensions were added in 1943. The market and feasibility analysis entailed a site analysis (environmental, utilities, zoning, parking, facility assessment, accessibility), an economic and demographic study, and a real estate market analysis, all of which were synthesized into a highest and best use analysis for the site. A&M examined the financial feasibility and estimated valuation that the site could bring to the Navy through a long-term ground lease (EUL) arrangement. The site’s qualities make it a possible location for office, multi-family, hotel, or prison development.

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Large Cavitation Channel, Memphis, Tennessee

Alvarez & Marsal was retained by the U.S. Navy to perform a market and feasibility study for a potential EUL of the Large Cavitation Channel Site, located near Memphis, Tennessee. The analysis evaluated the potential economic benefit to the Navy from an EUL at the Large Cavitation Channel Site. The Large Cavitation Channel Site occupies a portion of a 419,050 square foot warehouse building and 17,550 square foot office building that sits on 62.7 acres of land, most of which is not in use. The site was previously owned by Chicago Bridge and Iron who built the Large Cavitation Channel inside the existing structure on the site for the Navy. The Navy is interested in leasing 37.4 acres of vacant land, the 17,550 square foot office building, and the unused portion of the warehouse building, which is approximately 168,350 square feet. The market and feasibility analysis investigated the characteristics of the site (environmental, utilities, zoning, transportation, site improvements, accessibility), an economic and demographic study, and an analysis of the real estate market, all of which were synthesized into a highest and best use analysis for the site. An industrial development would be the highest and best use and primary economic driver of the Large Cavitation Channel Site. A&M examined the financial feasibility and estimated valuation that the site could bring to the Navy through a long-term ground lease (EUL) arrangement.

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Naval Station, Great Lakes, Illinois

Alvarez & Marsal prepared a highest and best use analysis for a 104-acre harbor formed by a pair of breakwaters and for the adjacent land and improvements at Naval Station Great Lakes located on Lake Michigan in northern Illinois. The site is the largest breakwater-defended harbor on the Illinois lakeshore north of Chicago. The highest and best use analysis explored the potential development of a commercial marina and ancillary uses on the site and addressed significant access and security issues that would need to be addressed if the site were to be open to the public. A&M’s analysis concluded that the site is the only feasible site for future, large-scale marina development in the greater Chicago metropolitan area, but that current demand, pricing and possible conflicts with military use of the site would yield only marginal return to a developer.

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Travis Air Force Base, Northern California

Alvarez & Marsal prepared a Concept Opportunity Study for the Air Force Real Property Agency that investigate eight prospects for enhanced-use lease opportunities that had been identified by the Air Force at Travis Air Force Base in northern California. The opportunities included two land parcels on the perimeter of the base, the 18-hole Cypress Lakes Golf Course, use of excess runway capacity by private freight carriers and a former Nike Missile site suitable for wind-drive electrical generation. The two most promising opportunities identified by the study were a 143-acre parcel on the perimeter of the base and the privatization of the Cypress Lakes Golf Course. Development of the 143-acre parcel must await the demolition of abandoned housing on the site under a Housing Privatization Initiative contract.

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Naval Air Station, Whidbey Island, Washington

Alvarez & Marsal prepared a highest and best use analysis for two sites at Naval Air Station Whidbey Island, Washington, a 22,318 square foot office building and an approximately five-acre parcel (formerly a tarmac area for Seaplane use) adjacent to the city of Oak Harbor’s marina. A&M conducted an extensive review of the real estate market in Oak Harbor that was necessitated by the small, non-institutional nature of this market.

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Naval Base Point Loma, San Diego, California

Alvarez & Marsal prepared a highest and best use analysis for two sites at Naval Base Point Loma in San Diego, California. A site consisting of 28,732 square feet of distribution and warehouse facilities on an approximately three and one half acre parcel is located in the mature Kearny Mesa submarket in central San Diego. An additional site consists of four Quonset Hut buildings utilized as office and repair / maintenance facilities totaling 53,633 square feet on a three acre parcel adjacent to the historic Old Town San Diego. A&M conducted a thorough analysis of the real estate market in San Diego to evaluate the potential “as-is” or redevelopment opportunities that these sites, located in two of San Diego’s core submarkets, may provide to Naval Base Point Loma under the Navy’s EUL program.

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Wilford Hall Medical Center, San Antonio, Texas

The U.S. Air Force hired Alvarez & Marsal to assist in identifying EUL opportunities for 190 ares of available land on the campus of Wilford Hall Medical Center (“WHMC”), at Lackland Air Force Base, in San Antonio, Texas. The study also considered potential re-use or replacement of the 50-year-old, 500-bed hospital for a regional outpatient facility.

WHMC is currently the Air Force's largest medical facility, and provides complete medical care to military healthcare beneficiaries in the south central United States as well as specialized care to patients referred from all over the world. In addition, Wilford Hall is the Air Force's leading center for medical education, training 65 percent of the Air Force’s physician specialists and 85 percent of its dental specialists. Wilford Hall also serves the civilian community in San Antonio, as a Level 1 trauma center.

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U.S. Marine Corps Hotel and Conference Center, Quantico, Virginia

Alvarez & Marsal was retained by the Naval Facilities Engineering Command Washington, acting on behalf of the U.S. Marine Corps, to perform a market and feasibility study for a proposed lodging and conference center facility (The “Proposed Hotel”) within the Marine Corps Heritage Center site at Marine Corps Base Quantico, Virginia (The “Base”). The purpose of this analysis is to evaluate the potential economic benefit to the Marine Corps from a high-quality hotel and conference center facility on the approximately 135-acre master planned site. The Site is within the Prince William County portion of the Base and is approximately 36 miles south of Washington, D.C., and 76 miles north of Richmond, Virginia.

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New London Energy Study, Groton, Connecticut

Alvarez & Marsal was retained by the United States Navy (“Navy”) to perform a market and feasibility study of the designated paved 21,924 square foot (“SF”) parcel of land located inside of the Naval Submarine Base New London, in Groton, Connecticut. The purpose of this analysis is to assist the Navy with the development of this site by a developer through the Navy’s EUL program. The site is located on the submarine base and is bordered to the east by Wahoo Road and to the north, south and east by trees approximately 55 miles from Providence, Rhode Island, 50 miles from New Haven, Connecticut, and 55 miles from Hartford, Connecticut.

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Newport Pier 2, Middletown, Rhode Island

Alvarez & Marsal was retained by the United State Navy (“Navy”) to perform a market and feasibility study for a potential EUL at Naval Station Newport (“NAVSTA Newport”), located in Newport and Middletown, Rhode Island. The purpose of this analysis is to evaluate the potential economic benefit to the Navy from a EUL for 53,000 and 93,000 square foot buildings, approximately 72 acres of land, a 1,500 foot by 200 foot pier and 20 acres of upland approximately twenty-five miles from Providence Rhode Island.

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