Dive Brief:
- Lendlease will open the base later this year with the US military first new privatized housing project in 13 years, the Australia-based global property manager and developer announced on Tuesday. It already owns and manages 40,000 US military housing units.
- The housing project is part of a larger acquisition as the company has closed land leases at seven Army installations, establishing what it calls Cadence’s portfolio of communities. It contains 345 newly privatized existing family units and a new build of 475 homes, along with 60 apartment units.
- The movement aligns with the strategic change of the company towards less risky investment and management strategies, after the effects of the COVID-19 pandemic hit Lendlease’s profits hard.
Diving knowledge:
At the end of the company’s full 2023 fiscal year, chief executive Tony Lombardo said Lendlease was in the second year of a five-year pivot to its investment-led strategy. This pivot includes halting construction for external projects below A$150 million ($94.7 million) and apartments for sale to third parties.
Army installations with properties recently managed by Lendlease include:
- Fort Buchanan in Puerto Rico.
- Fort Hunter Liggett in California.
- Fort McCoy in Wisconsin.
- United States Southern Command (SOUTHCOM) in Doral, Florida.
- Rock Island Arsenal in Illinois.
- Soldier Systems Center in Natick, Massachusetts.
- Tobyhanna Army Depot in Pennsylvania.
In late 2023, Lendlease will begin building housing in Doral for SOUTHCOM personnel — the military’s first such project in more than a dozen years. The $110 million development will include 75 family housing units and 60 two-bedroom apartments for “unaccompanied service members.” Lendlease will build the homes on about 51 acres.
The housing will provide more affordable housing options for SOUTHCOM personnel: Doral is located in Miami-Dade County, which has a high cost of living.
The Cadence Communities portfolio will also include 17 new family units under construction at Fort Buchanan, along with the fort’s existing 29 units. Lendlease will manage these units when they are completed, expected in late 2024.
Finally, Lendlease said it will seek operational efficiencies and improvements, including renovations, for residents of the other military installations in the portfolio.
