Enhanced-use Lease
In 2005, APG executed an Enhanced use lease (EUL) partnership with Opus East, L.L.C. (a subsidiary of Opus Corporation), a commercial real-estate development company. The EUL allows APG to ground lease “temporarily underutilized” land of the installation to a selected real estate developer. APG uses the proceeds from the ground lease for facility improvements and maintenance on the installation (i.e., new buildings, infrastructure improvements, deferred maintenance, road upgrades on post, etc.). In June 2009, Opus East assigned its EUL development rights to St. John Properties, Inc., a Baltimore-based commercial real estate development firm.
Under the EUL, St. John Properties has entered into a long-term ground lease of federally owned property for the development of commercial office space and research-and-development (R&D) space. The EUL development will provide new, high-quality buildings and facilities for the military/civilian tenants and their supporting government contractors who are relocating to APG because of the 2005 round of the BRAC process. The development of the EUL, known as The GATE Office and Technology Park or “The GATE” project, comprises 416 acres (1.68 km2), 11 land bays, and up to 3,000,000 square feet (300,000 m2) of development potential both inside and outside the secure perimeter of APG. St. John Properties is building new speculative office and R&D buildings for lease to both defense contractors and military/federal agencies.
In addition to office and R&D buildings, St. John Properties is developing an office and retail component just outside APG’s security gate. The GATE is being developed to meet anti-terrorism and force-protection standards, and will include sustainable-design elements to achieve LEED Silver Certification. The GATE is strategically located to allow private military contractors (PMCs) doing work for various military commands on APG to be closer to their client. The first building at The GATE was delivered in 2008 to CACI, an information-technology security PMC. In October 2010, L-3 Communications took occupancy of a 75,000 square feet (7,000 m2) building at The GATE, as did Raytheon Company, another 75,000 square feet (7,000 m2) building. In 2010, St. John Properties delivered three additional speculative buildings for lease. Complete development of The GATE project is expected to span five to 10 years.
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Famous quotes containing the word lease:
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And summers lease hath all too short a date.”
—William Shakespeare (15641616)