Enhanced Use Leases
Bostonia served as advisor to the U.S. Army in the development of the enhanced use lease (EUL) concept in the late 1990’s and has since been involved with a number of these projects. Enhanced use leasing was devised as a means to generate value from under-utilized, non-excess real estate property on Department of Defense (DOD) installations. Title 10 USC, Section 2667of the National Defense Authorization Act authorizes the DOD to make these assets available for long-term lease, and to be able to receive cash or in-kind consideration for the leased property in an amount that is not less than the fair market value of the lease interest. Currently, EUL is utilized by several Federal agencies, including the U.S. Army, U.S. Air Force, and Department of Veterans Affairs, and by state governments such as the Commonwealth of Virginia.
The EUL program, which is managed by the U.S. Army Corps of Engineers, Baltimore District, continues to operate as an invaluable tool for military installations and other government facilities to improve the utilization of their property while reducing operating costs and attracting private sector capital and expertise. The types of projects undertaken or identified through EUL have included office space, warehouse/industrial space, medical clinics, golf courses, and laboratories. EULs are also utilized to implement energy projects including cogeneration plants and renewable energy technologies.