Alvarez & Marsal serves the U.S. military

Real Estate Weekly, July 18, 2007

Alvarez & Marsal Real Estate Advisory Services, LLC served as the financial advisor to the U.S. Army for a major Enhanced Use Leasing transaction with General Motors (GM).

Under terms of the deal, the Army will lease GM a 2,400-acre parcel on its Yuma Proving Grounds in Arizona for 50 years, plus two 25-year options.

In lieu of rent, GM will build and operate a $100 million joint-use vehicle testing facility on the site and pay the Army $10.6 million to build additional facilities for testing heavy military vehicles.

Specifically, GM plans to replace its test track in Mesa, AZ with a stand-alone facility on the Yuma site, which has restricted air space that will assure privacy for the manufacturer.

"This is a significant project that will be beneficial to the military, GM and the surrounding community," said Bob Penn of the U.S. Army.

"Alvarez & Marsal's advisement and expertise on this and other important real estate negotiations we currently have underway has proven invaluable."

A&M REAS is also serving as the financial advisor to the U.S. Army for an industrial park and biomass energy facility on an 800-acre parcel at Camp Navajo just outside of Flagstaff, AZ, as well as a light industrial development on a 200-acre parcel at Fort Huachuca in Sierra Vista, AZ.