Private housing project started at Nellis Air Force Base
Housing at Nellis Air Force Base has seen better days. Aging, neglected residential units, some dating back to the 1950s, have plagued the military installation in recent years. Roughly 8,300 people work at Nellis, yet only 26 percent live on base. Almost 250 people are on a housing waiting list. And the wait can last a year or more. That may soon change as a result of a new public-private housing development.
Hunt Pinnacle is spending more than $198 million to demolish 915 outdated Nellis homes, build 815 new ones, and renovate 363 others. The undertaking calls for 1,178 housing units on 344 acres, along with new playgrounds, picnic shelters, parks and walkways.
Hunt Pinnacle will also build a new community center with a swimming pool and courts for volleyball, basketball and tennis.
The project is part of the U.S. Defense Department's nationwide effort to renovate and replace 300,000 housing units. In 1996, the department, lacking resources and management skills, enlisted the aid of private sector partners.
The Military Housing Privatization Initiative allows the armed services to provide loan and rental guarantees, make direct loans, invest in companies or partnerships or lease existing military property.
Nellis Air Force Base, as a result, is upgrading its living conditions. The 57-year-old, 14,000-acre military installation in the northeastern valley is partnering with Hunt Pinnacle, which is a joint-venture between El Paso, Texas-based Hunt Building Co. and Pinnacle Property Management Cos. of Seattle.
Under the plan, revenue from airmen housing allowances are leveraged to secure the large loans needed to efficiently bring base housing up to middle-class standards. The new residences are expected to help boost base morale and recruiting.
"Some of our houses date back to the 1950s," said Captain Jessica Martin, a Nellis spokesperson. "Due to their age and small size, we're constructing new ones to better accommodate our families."
The project will build 811 homes inside "Manch Manor," a base subdivision dating back to 1960. Four more homes are to be built at Dunning Circle. The new two-story, three and four-bedroom residences will range from 1,759 square feet to 2,484 square feet in size.
Designed by Giles-Buck & Associates of Boise, Idaho, homes feature landscaped yards, private entries, built-in bookcases, storage areas, technology centers and garages. It marks a major improvement over existing homes, some of which require lead paint and asbestos removal.
"We realize this is a big change for these families," said Debbie Perez, 99th Civil Engineer Squadron Housing Office flight chief. "When all is said and done, the residents will be very happy with what we have done."
Hunt Pinnacle won a competitive bid last year to secure the government contract. Hunt will design, develop and build the homes. Pinnacle will manage the completed residences.
The first homes are expected to be delivered in early 2008, with renovations occurring over several years. New construction is expected to finish by 2012.
Hunt has built 45,223 base homes to date -- more than any other builder -- while Pinnacle now manages 16,000 military units nationwide. Both companies have successfully competed under the Military Housing Privatization Initiative, which promises a guaranteed, long-term revenue stream in return for an initial capital investment. The program typically leases military land to winning developer-builder-management teams for 50-year terms.
"As of February 2007, over 110,000 units or 90 percent of inadequate housing will have been privatized," Deputy Defense Undersecretary Philip Grone said earlier this year.
"Military personnel and their families deserve the best possible living and working conditions. Sustaining the quality of life of our people is crucial to recruitment, retention, readiness and morale," he added.
Tony Illia writes for the Review-Journal's sister publication, the Business Press. Contact Tony Illia at tonyillia@aol.com or (702) 303-5699
