The Walter Reed Army Medical Center (WRAMC) has engaged in an Enhanced Use Leasing (EUL) project involving both the rehabilitation of an historic real estate asset and a parcel of underutilized land located on the WRAMC campus. EUL is a real estate financing tool that allows the Federal government to lease its real property that is underutilized due to condition or lack of construction, renovation, or demolition funds to the private sector.
This tool allows the Army to benefit from private sector resources to finance, design, construct, operate, and maintain real estate assets for a term not to exceed 50 years. In return, the Army receives a fair-market return for the real property as either cash or in-kind consideration and a return of the constructed or renovated asset at the end of the lease term. EUL can save money by reducing Federal payments for operating and maintenance costs, and it can generate income from previously underutilized property. It also provides a unique tool to leverage private sector dollars instead of scarce Federal dollars to fund operations, maintenance, and construction.
The WRAMC EUL project involves the revitalization of a 246,000 square foot historic office building and a 300,000 square foot new laboratory and administrative office facility with a parking structure on 8.2 acres of vacant land. Through the WRAMC EUL project, the Army will be able to leverage an estimated $160 million of private capital to develop the lab and office facilities. This tool will also enable WRAMC to renovate and build facilities in a significantly shorter time frame than could have been done if through government appropriations.
For more information, contact Mr. Alan King at (202) 782-3355 or via e-mail at alan.king2@us.army.mil
