Highlights:
Unlocking the Value of Underutilized Real Estate for the Navy.
Client Goals:
The Department of Navy owns valuable real estate and facilities in desirable, waterway-adjacent locations across the country. The Navy sought to leverage the value of underperforming assets through in-kind or cash consideration with its Enhanced Use Leasing (EUL) program.
Hayat Brown Role:
EUL Program Development
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.
Analysis
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.
Partner Selection
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:
