NEW YORK, NY - McCormack Baron Salazar and The Goldman Sachs Urban Investment Group are pleased to announce their strategic partnership and shared vision for the future of rebuilding distressed communities across the country. This partnership combines the vast experience of an urban-inner city developer with a firm known for its financial expertise and commitment to community development. When combined, the strength of these two national firms will have the ability to significantly impact the revitalization of low-to-moderate income urban communities.
McCormack Baron Salazar Chairman and CEO, Richard D. Baron, announced the investment by Goldman Sachs of a minority interest in the nationally recognized development firm. Mr. Baron said, "Building upon the strength and experience of McCormack Baron Salazar's 35 years of development success, Goldman Sachs saw this as an opportunity to expand their focus on investing in urban America. This was a natural progression for both firms to continue their missions."
"We are proud to partner with McCormack Baron Salazar. They are thought-leaders in comprehensive neighborhood development, using innovative approaches to transform previously neglected communities. This partnership is a unique opportunity to expand our commitment to the revitalization of urban neighborhoods on a national scale," said Alicia Glen, Managing Director and head of the Goldman Sachs Urban Investment Group.
Goldman Sachs' partnership interests began with its equity investment in McCormack Baron Salazar's revitalization of Harmony Oaks, (formerly C.J. Peete) a HOPE VI development in New Orleans, Louisiana. This former public housing site was the home to nearly 150 families when Hurricane Katrina struck on August 29, 2005. Currently under construction, the $172 million, 460-unit redevelopment, was designed to replicate the traditional Central City neighborhood. In February 2010, both firms welcomed the first returning residents to Harmony Oaks.
Goldman Sachs is also the equity investor in the most recent MBS project, MacArthur Park, which celebrated its groundbreaking April 12, 2010. MacArthur Park Apartments will be located on land adjacent to the METRO Westlake/MacArthur Park Station in Los Angeles, California. MacArthur Park Apartments Phase A will have 90 units and approximately 15,000 square feet of ground floor retail on 1.62 acres of land. The project design includes a public plaza that is meant to link pedestrians to Phases A & B, MacArthur Park, the Metro station portal, public commuter garage, and neighboring local bus lines.
McCormack Baron Salazar is a nationally acclaimed leader of affordable urban housing development. Since its inception in 1973, the firm has developed 15,260 units of affordable housing and 1.2 million in retail/commercial square footage in 33 urban markets totaling more than $2.1 billion in development investment. The firm's mission is to rebuild neighborhoods in central cities across the United States that have deteriorated through decades of neglect and disinvestment. McCormack Baron Salazar headquarters are located in St. Louis, Missouri, with satellite offices in Los Angeles, Memphis and Pittsburgh.
Founded in 2000, The Goldman Sachs Urban Investment Group ("UIG") deploys the firm's capital by making investments and loans that benefit low- and moderate-income people and underserved communities. Through its comprehensive community development platform, UIG is a catalyst in the revitalization of distressed urban neighborhoods. UIG is part of The Goldman Sachs Group, Inc.
Source: McCormack Baron Salazar