GMAC Commercial Mortgage (GMACCM) and its subsidiary Newman & Associates have teamed-up to structure and fund a $47.9 million Department of Defense transaction.

The deal provides for the construction and permanent financing that will be used to construct and rehabilitate more than 650 military housing units at Robins Air Force Base, Georgia.

Newman & Associates structured and placed a $25.6 million, 32-year mortgage with an institutional investor, while GMAC's construction lending unit funded a $22.3 million subordinate construction loan. That financing will be repaid by a Department of Defense second mortgage that will be funded when the project is completed, which is expected in two years.

GMACCM will provide credit enhancement for the senior loan while the project is being completed.

The project involves the demolition of 219 units, renovation of 300 units and construction of 370 units, all within 25 months. It is being handled by Hunt Building Corp., which will manage the units under a 32-year government contract.