Systems Acquisition Management Support (SAMS) Complex

The Air Force is pursuing an innovative business practice as a means of upgrading facilities on Los Angles Air Force Base (LAAFB), CA. This unique project involves trading government-owned land in the Los Angeles area in exchange for the design and construction of new facilities at LA AFB. The Fiscal Year 2001 Defense Authorization Act allows the Air Force to transfer portions of the base to a private developer in exchange for construction of new seismically stable facilities that will better protect the LAAFB workforce and promote efficiency in operations. As a result of this arrangement, the Air Force gains a new office complex at a fraction of the cost of independently contracting a new office complex. The Los Angeles area communities gain government land for potential development. The Air Force issued a Phase I request for proposals RFP (bidder qualification) in July of 2001 and a Phase II RFP (selection of a single offeror) in January of 2002. The Air Force has just completed its Phase II evaluation process and has selected a joint venture partnership between Kearny Real Estate Company, Morgan Stanley Real Estate Fund (MSREF) and Catellus as the developer. The Air Force will now enter into Phase III of the source selection process by conducting final negotiations with Kearny-MSREF-Catellus. Negotiations and due diligence period is expected to be completed in late spring-early summer of 2003. The Air Force will sign a final contract with Kearny-MSREF-Catellus upon successful completion of their due diligence. During the diligence period Kearny-MSREF-Catellus will put in place their financial structures as well as obtain approvals from city, county and state governments for the commercial developments on the conveyed properties. Design and construction of the SAMS complex is estimated to start in the summer of 2003 and be completed in the summer of 2005.

The areas of LAAFB affected by this project are situated on four parcels totaling about 113 acres and located one mile south of Los Angeles International Airport (LAX). LA AFB is the home of the Space and Missile Systems Center (SMC), a research, development and contracting organization of the United States Air Force. LAAFB has no airfield, nor any flight operations capability or requirement. Many local experts consider the Air Force property one of the most desirable large single owner parcels in the Los Angeles South Bay area.

Background

The four parcels of LAAFB involved in the SAMS Project are:

• Area A: about 42 acres located at 2400 East El Segundo Blvd. in El Segundo, CA; consists of six (6) two-story and one (1) six-story office building totaling about 835,000 SF; much of Area A is landscaped with many large shade trees creating a campus-like setting.
• Area B: about 52 acres located near Area A at the intersection of El Segundo Blvd and Douglas Avenue (west of Aviation Blvd.) in El Segundo; contains facilities for support of AF personnel assigned to SMC, as well as support of military retirees. Area B houses base support functions such as the 61st Air Base Group headquarters, Medical Clinic, Base Exchange and Commissary. Area B is also the designated location of the SAMS Complex.
• Lawndale Annex 3: about 13 acres located on the east side of Aviation Boulevard, between Rosecrans Avenue and Marine Avenue in the city of Hawthorne, CA. Currently the property is improved with a 30,000 square-foot, single-story concrete building, a RV parking lot and a softball field.
• Sun Valley Property: 3.7 acres located at 10888 Latuna Canyon Road, Sun Valley, Los Angeles County, CA. This is the former location for Armed Forces Radio and Television Service. The property contains a 59,600 SF industrial facility built in 1966 and is currently vacant.

As presently envisioned, the Air Force would move all government workers to Area B, freeing up Area A, Annex 3 and Sun Valley to be transferred to a developer for private development. The 865,000 SF of outdated facilities and buildings occupied by the Air Force at Area A and Annex 3, which do not meet current fire codes or seismic standards, would be conveyed and likely demolished. These buildings would be replaced at a reconfigured Area B with approximately 560,000 SF of new administrative and special purpose facilities. The project allows the Air Force to dispose up to 865,000 SF of substandard buildings, and occupy a modern and efficient complex. The concept could eliminate a requirement for 130 to 150 million dollars in military construction projects. It is also estimated that right-sizing LA AFB will save over three million dollars annually in operations and maintenance costs. The Air Force also wishes to minimize disruption of its workers currently located on those portions of LAAFB that would be provided for private development. Therefore, demolition of these structures must be coordinated with new private developments so the disruption to the Air Force mission is held to a minimum.

It is projected that 600,000 - 800,000 SF of private office, hotel, retail space and parking could be built at Area A including a commercial or residential development at the Lawndale Annex.

To the greatest extent practicable, the Air Force intends to use best commercial practices for this project

Kearny-Catellus concept for the SAMS Complex