Goldman Sachs, L&M Launch Investment Fund for Urban Housing Projects

GSLM Capital Partners L.L.C., an investment entity involving Goldman Sachs’ Urban Investment Group and L&M Development Partners Inc., has been created for the launching of a new $100 million investment fund that will target mixed-income housing projects in various well-populated and ethnically diverse markets across the United States.The fund’s $100 million, which will be leveraged, will likely be invested over a period of approximately three to four years. Of particular interest to GSLM will be Metropolitan New York, the Northeast, the Mid-Atlantic and California, where the fund will invest in mixed-income, affordable and workforce housing, as well as community-serving retail developments. “We will focus on the Northeast and California, but we’re really looking for urban infill developments all over,” GSLM’s Larry Florin told CPN today. “We’ll develop but we’re also looking at existing properties that can be stabilized or repositioned. Equity totaling from $2 million to $20 million will be allocated for various endeavors.Goldman Sachs UIG and L&M have patterned in the past on similar pursuits. Presently, the two companies are providing funding for the construction of four projects in Metropolitan New York, including the mixed-use Kalahari, a 250-unit mixed-income condominium development in Harlem. New York City-based Goldman Sachs’ urban investment group is part of the Goldman Sachs Group’s merchant banking division that invests in real estate projects and operators in emerging urban areas. Headquartered in New Larchmont, N.Y., L&M Development Partners is an integrated family of companies engaging in the development, construction and management of real estate. L&M has constructed over 8,000 residential units including affordable and mixed-income offerings.