Department of the Navy Kicks Off Partnership With Clark Realty on Precedent Setting Housing Development

First of Kind Community To Improve Quality of Life for Single Sailors in San Diego

SAN DIEGO – A commencement ceremony took place today at Naval Base San Diego to mark the start of construction for Pacific Beacon, the nation’s first largescale housing privatization for single Sailors. Rear Admiral Hering (Commander, Navy Region Southwest), Captain Dixon Smith (Commanding Officer of Naval Base San Diego), Mr. Frank Jimenez (General Counsel of the Navy) and executives from Clark Realty participated in today’s ceremony to recognize the innovative public-private venture between the Department of the Navy and Clark Realty. Together, the partnership will leverage private sector financing and expertise to provide much needed housing for nearly 2,000 Sailors in the new buildings, many of whom currently live on their ship while in homeport.

Pacific Beacon, conceived with the overarching design and development theme of “at ease,” will be customized for Sailor life with dual master suite apartments and amenities centered on health, education, and relaxation. Construction on the 15-acre site on Naval Base San Diego officially began last month; final delivery is scheduled for 2009.

“Pacific Beacon will be the first of its kind,” said Rear Admiral Hering. “We are very proud of our ongoing partnership with Clark Realty Capital. As seen through our successful family housing communities, their creativity and care for our Sailors is unmistakable, and I believe Pacific Beacon will set the standard for the future.”

Taking cues from the modern design of successful new urbanism developments popping up throughout the city, Pacific Beacon will itself be a striking addition to the San Diego skyline with four 18-story towers boasting magnificent water and city views. The apartments will feature two-bedroom, two-bathroom residences with open living areas, full kitchens, washer/dryers, and balconies. Sailors will have their own bedroom suites, spacious walk-in closets, and private bathrooms. Innovative financing and efficient planning will allow the project to include a state-of-the-art fitness center, a resort-style swimming pool, spacious lounges, a coffee bar, classrooms, and theaters.

“What makes this project special is not just the precedent-setting nature of being the ‘first’, but even more so, it’s about being customized for the unique lifestyles of these single Sailors,” said Bryan Lamb, development executive with Clark Realty Capital. “When Sailors come home, they want to relax and leave behind the worries of a high-stress work environment. Pacific Beacon’s ‘at ease’ design and amenities will help them to do just that so they are better prepared to perform when duty calls.”

Pacific Beacon, an important part of the Navy’s Homeport Ashore initiative, will help alleviate the current housing shortfall of approximately 3,000 beds. Since lack of private quarters in the homeport consistently ranks among the highest quality of life issues for junior Sailors and is one of the top reasons why they leave the service, development of Pacific Beacon is expected to directly improve retention – key for an all-volunteer Navy.

“Pacific Beacon will provide these hardworking Sailors a first rate living environment at no extra cost to them,” said Lamb. “We are honored the Navy has once again selected our team to support these deserving men and women.”

About Clark Realty

A fully integrated, national real estate firm, Clark Realty offers a broad base of services including capital markets, finance, development, construction, property management, and investment management. Clark Realty is an affiliate of the Clark Construction Group, the nation’s oldest and largest privately-held general building contractor in the nation. Clark is currently engaged with the Army, Navy, and Marines at 10 military installations throughout the U.S. Upon completion, Clark will have built or renovated nearly 25,000 homes with a development value in excess of $4.2 billion.

Clark has been active in Southern California for the last 25 years. San Diego landmarks built by Clark include the San Diego Padres stadium, the stunning Manchester Grand Hyatt, and the new trolley station at San Diego State University. Clark is also involved in the $410 million seismic retrofit of the Coronado Bridge. Housing developments include nationally acclaimed communities such as Gateway Village, The Village at Serra Mesa, and The Village at NTC, winner of the Environmental Protection Agency’s prestigious Smart Growth Award.

About NAVFAC

Innovation, Leadership, Performance. The Naval Facilities Engineering Command (NAVFAC) manages the planning, design, construction, contingency engineering, real estate, environmental and public works support for U.S. Navy shore facilities around the world. We provide the Navy’s forces with the operating, expeditionary, support and training bases they need. NAVFAC is a global organization with an annual volume of business in excess of $7.6 billion. As a major Navy Systems Command and an integral member of the Navy and Marine Corps team, NAVFAC delivers timely and effective facilities engineering solutions worldwide.