US Navy Enhanced Use Leasing Program

PROJECT

US Navy Enhanced Use Lease Program

Project Overview

The US Navy sought to leverage the value of underperforming real estate assets in waterway-adjacent locations across the country through an in-kind or cash consideration with its Enhanced Use Leasing (EUL) program.

Scope: Operations Advisory | Portfolio Strategy | Project Delivery Advisory

Client: US Department of the Navy

Location: Naval Weapons Station Yorktown, Newport News, VA, Naval Station Great Lakes, Chicago, IL, Naval Station Norfolk, Norfolk, VA, Naval Submarine Base New London, Groton, CT, Naval Support Activity Mid-South, Millington, TN, Portsmouth Naval Shipyard, Kittery, ME, Naval Base Point Loma, San Diego, CA, Marine Corps Base Quantico, Quantico, VA, Naval Air Station Whidbey Island, Oak Harbor, WA, Naval Academy, Annapolis, MD, Naval Air Station Patuxent River, Patuxent River, MD, Naval Air Station Oceana, Virginia Beach, VA, Naval Support Activity Mechanicsburg, Hampden, PA, Naval Station Pearl Harbor, Pearl Harbor, HI, Naval Support Facility Indian Head, Indian Head, MD, Naval Support Facility Anacostia , Anacostia, Washington, DC, Naval Support Activity Crane, Perry, IN, Naval Weapons Station Seal Beach, Seal Beach, CA, Naval Surface Warfare Center Corona, Norco, CA, Naval Air Base San Pedro, San Pedro, CA, Naval Base Ventura County, Pt. Mugu, CA, Naval Air Weapons Station China Lake, Ridgecrest, CA, Naval Station Everett, Everett, WA, U.S. Naval Base, Pearl Harbor, Pearl City, HI, Naval Base Coronado, San Diego, CA, Naval Computer and Telecommunications Station Cutler, Cutler, ME, Naval Air Station Corpus Christi, Corpus Christi, TX, Marine Corps Air Station Kaneohe Bay, Kaneohe Bay, HI, U.S. Naval Base, Pearl Harbor, Waipio Peninsula, Ewa Beach, HI, Naval Support Facility Dahlgren, Dahlgren, VA, Naval Base Guam, Santa Rita, Guam, Naval Air Facility Atsugi, Japan, Naval Station Newport

The Hayat Brown team developed and implemented the service-wide EUL program and process to commercialize underutilized land, infrastructure, and other real property improvements located on active Navy installations around the country. In this role, Hayat Brown team members wrote the Navy’s EUL Guidebook and assisted with the development, execution, and management of the entire program. We developed policy and program guidance and all transactional documentation, including the form of ground lease and procurement documents.

Our team applied its custom-designed screening methodology to 67 potential EUL opportunities at 39 installations across the country. For each potential opportunity, we conducted market and feasibility studies, evaluated traditional commercial real estate uses such as retail, hotel, and office subleasing, but also analyzed locality-specific revenue producers such as energy generation, data centers, ports, and marinas.

Of the 67 potential EUL opportunities, 15 were recommended to proceed into the program, requiring on-site industry forums to present opportunities to interested parties, solicitations, evaluation of developer proposals, and negotiation with the selected developers.

Project outcomes were as follows:

Completed over 40 market and feasibility studies, including an analysis of site development risks, economic and demographic factors, real estate market, financial feasibility, highest and best use, estimated in-kind consideration, and conclusions and recommendations.
Executed 14 developer selection processes including the full market sounding, solicitation drafting and proposal evaluation services.