The Michaels Organization to Invest $500M in Military Housing Portfolio Across 4 States

The Michaels Organization has announced a substantial investment of $500 million in its military housing portfolio over the next five years. This investment will target seven army installations located in various states. The funding for this project will come from reinvestment of funds within the organization as well as a $305 million bond issuance. The bond issuance was arranged by Stifel and Ballard Spahr LLP, and implementation of the project is set to begin in the upcoming summer.

Scope of the Project

The investment will be utilized for various purposes including the construction of new residences, rehabilitation of historic homes, and renovation of existing ones. Through this venture, the company aims to provide housing for approximately 15,000 military families. The selected locations for this project include Fort Belvoir, Va., Fort Leavenworth, Kan., Fort Moore, Ga., Fort Irwin, Calif., Fort Huachuca, Ariz., Presidio of Monterey, Calif., and Yuma Proving Ground, Ariz.

Bond Issuance and Investor Interest

The bond issuance, totaling $305 million, attracted significant interest from investors, with 35 investors collectively placing more than $1.8 billion in orders for the financing. Legal representation for Michaels in this transaction was provided by Michael Sklar from Levine, Staller, Sklar, Chan & Brown, P.A.

The Michaels Organization's Role

Since becoming a private-sector housing partner to the Department of Defense in 2004, The Michaels Organization has been actively involved in military housing. This initiative came after the passing of the Military Housing Privatization Initiative by Congress in 1996. Currently, the company operates assets across various residential sectors and serves over 200,000 residents in more than 570 communities.

Recent Projects

In addition to the military housing investment, The Michaels Organization has recently completed a significant student housing project worth $330 million. This project, finalized at UC Davis, added 1,549 beds to the university's student housing inventory.