8/25/2009 | By Allen Kenney
Commercial real estate investment company Behringer Harvard has entered into a partnership with the U.S. Army to provide 10 new lodging facilities for transient military personnel.
Behringer Harvard Opportunity REIT II Inc. has provided the partnership with a $25 million mezzanine to finance the project. The InterContinental Hotels Group will operate the new facilities.
The announcement comes as part of the Privatization of Army Lodging (PAL) program to construct and refurbish housing at military bases. Under the program, the Army contracts with private-sector companies to build and operate hotels serving both military and non-military customers staying at bases for training or meetings. Additionally, the facilities service active-duty personnel transitioning to longer-term military housing.
The hotel sites are spread throughout states across the country, including Alabama, Hawaii and Oklahoma.
Jason Mattox, Behringer Harvard's chief administrative officer, noted that although this is the company's first public-private partnership, Behringer Harvard looks forward to pursuing similar deals in the future.
"We're very satisfied that we can make an investment that is attractive to our investors," Mattox said. "We're also satisfying the needs of our men and women in uniform. It's a rare opportunity."