Corvias Military Living Forms Public-Private Partnership With U.S. Air Force’s Continental Group

September 3, 2013

Innovative partnership focuses on improving quality of life for more than 4,000 airmen and their families from Alaska to Florida

East Greenwich, R.I. (September 3, 2013) – Corvias Military Living, an affiliate ofCorvias Group, a privately-owned, vertically-integrated real estate solutions group, announced today that it has assumed responsibility for the development and management of on-base housing for the U.S. Air Force's Continental Group.

The Continental Group is comprised of Edwards Air Force Base, Calif.; Eglin Air Force Base, Fla.; Eielson Air Force Base, Alaska; Hurlburt Field, Fla; McConnell Air Force Base, Kan.; and Seymour Johnson Air Force Base, N.C. The Air Force selected Corvias Military Living through a competitive solicitation procedure headed by the Air Force Civil Engineering Center(AFCEC).

"We consider it a privilege to have been selected by the Air Force for the important mission of helping them care for their Airmen," said John G. Picerne, CEO of Corvias Group. "Over the past 14 years, we have worked hand-in-hand with the Army to solve some of their toughest housing challenges, fundamentally reshaping perceptions about what housing for our service members should be and significantly improving quality of living for thousands of service members and their families. We look forward to providing our new Air Force partners the same levels of innovative financing and creative living solutions that we have been providing the Army for more than a decade"

Under the terms of the partnership, the Air Force has leased approximately 2,425 acres on six bases, ranging from Alaska to Florida, to Corvias as part of a 50-year, $725 million transaction. Over the course of the agreement, Corvias will finance, plan, design, build, renovate, manage and maintain at least 4,040 existing homes on the six Air Force bases. During the five-year initial development period, Corvias will also complete the construction of approximately 1,308 new homes, the renovation of 1,077 homes, and the construction of six community centers.

"Our employees understand the huge sacrifices made by our service men and women and consider it their vocation to give back to the one percent who serves so that the rest of us can live free," said Mike Steiner, Managing Director of Corvias Military Living. "We understand military culture and are deeply empathetic to the unique challenges that many of our families face, such as frequent moves and overseas deployment. In fact, our residents are really the 'X factor' of what makes our jobs so special. It's easy to put their needs first and feel good about it."

While the Continental Group is the first Air Force project to be awarded to Corvias Military Living, the company has been a pioneer and leader in the privatization, construction and management of U.S. military housing for more than a decade. The company currently manages more than 21,000 housing units at seven Army installations, including Fort Rucker, Ala.; Fort Polk, La.; Fort Riley, Kan.; Fort Sill, Okla.; Fort Bragg, N.C.; Aberdeen Proving Ground and Fort Meade, Md.

To date, the Air Force has awarded 30 projects at 57 installations totaling 48,800 homes, which is 90 percent of all Air Force housing in the continental United States and its territories. Within the next year, the Air Force will complete the privatization of 100 percent of all United States-based military housing.

According to Ian Smith, deputy chief of AFCEC's Housing Division, the Air Force has accomplished in 10 years through housing privatization what would have taken 25 years through traditional military construction and saved the taxpayers $7 billion in the process.

"The Air Force has privatized some 48,000 homes at 57 bases at a cost to the Air Force of $490 million and brought in $7.7 billion in private funding to provide quality homes for our Airmen," Smith said.

Pioneers in the field of long-term residential partnerships, Corvias has a long and successful track record in residential development and management. With the Continental Group, its national portfolio now includes more than 24,000 residences with 80,000 bedrooms and 10,000 acres from Alaska to Florida. These communities include 35 full-scale community centers with first-class amenities such as swimming pools, state of the art gyms, high-tech gaming centers and computer rooms. For the last five years, Corvias residents have voted the company number one in resident satisfaction amongst other national portfolios of more than 10,000 homes.

About Corvias Group

Corvias is a privately-owned, vertically-integrated real estate solutions group dedicated to building strong communities through partnerships that deliver the highest quality development, construction and management solutions to a range of clients, including the military and higher education. Applying our success as pioneers of real estate development and management for the military, our family of companies, Corvias Military Living and Corvias Campus Living, deliver customer service that exceeds client expectations, and an innovative, comprehensive approach to facility financing, management and construction. We have the ability to forge partnerships that consistently put the interests of our clients first and the flexibility to pursue creative, sustainable long-term solutions to their most difficult challenges. www.corvias.com