Press Releases

Transferring from Puerto Rico to Redeveloped Historic Former Army Hospital, Army South Command Inks New Headquarters at Unique Public-Private Redevelopment in San Antonio

Ft. Sam Houston's historic, original Brooke Army Medical Center was completed in 1937. Vacant since 1996, the seven-story, Spanish Colonial Revival-style building is being preserved and renovated in a first-of-its-kind project using private capital and expertise on an active military installation. U.S. Army South Command is one of several tenants who have signed leases in recent months. (enhanced photo)

FORT SAM HOUSTON, Texas--(BUSINESS WIRE)--Aug. 26, 2003-- First Commercial Privatization on Active U.S. Military Installation
In a significant relocation of Army forces, the United States Army South Command (USARSO) today announced that it has signed a long-term lease agreement establishing its headquarters at the San Antonio post's former Brooke Army Medical Center ("Old BAMC"). The command had been headquartered at Ft. Buchanan, Puerto Rico, prior to its transfer to Ft. Sam Houston this year in anticipation of completing its new headquarters at the Old BAMC.

Redevelopment of the historic "Old BAMC" (now known as the "Offices at Ft. Sam Houston") is the result of a unique public/private partnership created to redevelop the abandoned historic hospital property and its two satellite pavilions into modern offices. Private development capital and expertise were employed in the pilot project to redevelop the property into a flagship headquarters suitable for USARSO.

U.S. Senator Kay Bailey Hutchison (R-Tex.) presided over the ceremony. She was joined by bi-partisan Texas congressional delegates who were instrumental in establishing the redevelopment project and USARSO's subsequent relocation.

Representing USARSO was its Commander, Maj. Gen. Alfred Valenzuela. Tom Chandler, president and COO of local developers Orion Partners Inc., and Patrick McCann, president of West Chester, Pennsylvania-based Weston Solutions Inc., Orion's partners in the venture, represented the development group.

The pilot privatization initiative taps the private development industry to enable the preservation and reuse of historic properties on the Post. This novel application of existing "enhanced use leasing" provisions of 10 USC 2667 enables the Army to save buildings of historic significance that might otherwise be demolished for lack of the funding and expertise needed to adapt and re-use them. According to Chandler, the redevelopment process will provide for preservation of key historic elements at Old BAMC, such as the dramatic entryway to the seven-story, Spanish Colonial Revival building and the original, hand-painted plaster ceilings, among other historic features. The redevelopment will take the interior of the former hospital to a concrete shell. The building is being rebuilt into a state-of-the-art office building leased to USARSO for its headquarters operation, as well as other military and civilian tenants.

Prior to completion of a new medical facility in 1996, The Offices at Ft. Sam were the three primary buildings of Brooke Army Medical Center Hospital. Old BAMC, the focal point of the garrison at the north end of the historic parade grounds, and the North and South Beach Pavilion buildings located to the east of the parade grounds, total 450,000 square feet. The engagement of these buildings by the Secretary of the Army and the Orion-Weston group embodies the first-ever partnership between the Army and a private development group on an active Army post.

"The lease is the culmination of almost three years of work by many interested parties," said Chandler. "Primary has been the U.S. Army under the leadership provided by Lt. General James B. Peake, former commander of the post and now serving at the Pentagon as the Army's Surgeon General. Virtually the entire State of Texas congressional delegation has been supportive of this effort, and special thanks are due to Senator Kay Bailey Hutchison and Congressmen Ciro Rodriguez, Charlie Gonzales and Henry Bonilla."

After more than a year of planning by the Army and the Orion-Weston group, the privatization effort officially commenced in June 2001 with the commitment to 50-year leases on each of the three buildings of The Offices at Ft. Sam by the private development group. The Orion-Weston partnership group is responsible for development capital and expertise, renovation and leasing. At the time the lease was signed, Ft. Sam Houston was one of the nation's few open bases. After the events of September 11, 2001, Ft. Sam Houston began limiting access to the post, and The Offices at Ft. Sam became a unique office alternative for tenants requiring or desiring high levels of security.

The Offices at Ft. Sam currently have nearly 180,000 square feet remaining available for lease.

Contacts
Orion Partners, San Antonio
Tom Chandler, 210-525-8500
or
Media:
Strategic Communications Group
Ron Gossen, 210-641-4441
or
Leasing:
Cross and Company
Paul Fagan, 210-824-9080