Goldman Sachs’ urban investment group has launched a new opportunity fund with Davie, Florida-based construction firm, L&M Development.
GSLM Capital Partners, as the fund will be known, will focus on housing development and land acquisition in urban areas with four projects already underway in the New York City area. One development includes the environmentally-friendly 249-unit Kalahari condominium development on 116th Street, in Harlem, which is expecting to start being occupied later this year.
Alicia Glen, managing director of Goldman’s urban investment group, said in a statement the fund would help develop the duo’s relationship and provide “catalytic investments in underserved and transitioning neighborhoods.”
The urban investment group, part of the private equity arm of Goldman Sachs, invests funds committed by Goldman Sachs in the effort to provide long-term capital for firms operated or owned by ethnic minorities and real estate developers targeting urban communities. It invests up to $100 million at a time. A spokeswoman for Goldman said GSLM would not raise third-party real estate funds, but continue to invest the investment bank’s capital.
L&M, co-founded by Ron Moelis and third-generation builder Sanford Loewentheil in 1984, has developed more than $2 billion of real estate. Moelis added in the statement: “We think that by combining L&M’s outstanding reputation and creative approach to affordable and mixed use market rate housing, with UIG’s strong national reputation, we will be able to leverage our already successful partnership into new markets and into new ventures.”
In January, the urban investment group partnered with New York-based multifamily developer BRP Development Corp. to build three mixed-use developments in New York City’s Bedford Stuyvesant area in Brooklyn and Harlem in the Bronx. The joint venture would commit approximately $20 million (€13 million) in three mixed-income developments, totaling around $80 million in development costs.