Michaels Organization Announces Over $500 Million Investment in Military Housing

The Michaels Organization, a key player in residential real estate, has disclosed its plan to invest more than $500 million into its U.S. Army housing portfolio over the next five years. The investments will be allocated across seven Army installations for new home developments, renovations, historic home rehabilitations, infrastructure upgrades, and new amenities.

The financing for this landmark reinvestment includes a combination of project reinvestment funds and a $305 million bond issuance. This bond issuance, closing successfully on March 6, 2024, represents a significant financial backing from a spectrum of financiers, lawyers, and investors. Michaels' development strategy was formulated in partnership with Army leadership, targeting the improvement of housing for service members and their families at designated Army posts.

The investment aims at enhancing the living quality for military families, with Michaels CEO John J. O'Donnell expressing gratitude for the trust placed in their endeavors by the U.S. Department of Defense and partners. The effort will significantly improve housing infrastructure, thereby contributing to the military's recruitment and retention efforts. Michaels has been a private-sector partner in military housing development since 2004, reflecting their long-term commitment to serving military families.

The bond issuance attracted a robust market response, with orders exceeding $1.8 billion for the $305 million offering, showcasing strong investor confidence in the project's long-term goals. Implementation of Michaels' development plan is scheduled to commence this summer across all targeted installations.