GSLM Capital Partners Finalizes Investment in Mixed Income Project in Brooklyn

October 2, 2008 9:00 AM EDT

NEW YORK--(BUSINESS WIRE)--

GSLM Capital Partners, a partnership between L&M Development Partners and Goldman Sachs' Urban Investment Group (UIG), announced today that it has completed its investment in the Columbia Hicks project located in the Cobble Hill section of Brooklyn, New York. The $55 million investment will finance a mixed income apartment development totaling 150 units.

Assistance for this project is being provided by The New York City Department of Housing Preservation and Development (HPD), the New York City Housing Development Corporation (HDC) and the New York State Division of Housing and Community Renewal (DHCR). Assistance from these public agencies was critical in creating affordable housing units in Cobble Hill, a neighborhood which has lost many affordable housing units due to gentrification. HDC provided $20,020,000 in bond financing as well as $6,415,000 in low interest subordinate debt from its corporate reserves. In addition, Citibank is providing construction and permanent financing for the project.

"We are very pleased to close this investment as both public and private sectors see the importance even in challenging markets to bring much needed quality mixed-income housing to emerging neighborhoods. The Columbia Hicks project is a wonderful example of our commitment to investing in projects that continue to revitalize our neighborhoods," said Alicia Glen, Managing Director of Goldman Sachs UIG.

"This project expands our commitment to bring quality, affordable and market rate housing, not only to this community, but to urban communities across the country," said Ron Moelis, CEO of L&M Development Partners.

GSLM Capital Partners was created in 2008 to invest in urban in-fill development opportunities throughout the New York City metropolitan area, in addition to other strategically identified geographic communities throughout the United States. This project was particularly aligned with the core strategies of GSLM, involving both market rate as well as affordable housing.

Columbia Hicks is scheduled to break ground in October 2008 and expected to be completed by late 2010.

About L&M Development Partners

L&M Development Partners, which was co-founded by Ron Moelis and Sandy Lowentheil, is an integrated family of companies with a well-established track record in the New York metropolitan area in real estate development, construction and property management (www.lmdevpartners.com). L&M has completed the development and construction of over 8,000 units of housing, many of which are either affordable or mixed income projects.

About The Goldman Sachs Group, Inc.

The Goldman Sachs Group, Inc. (NYSE: GS) is a bank holding company and a leading global investment banking, securities and investment management firm. Goldman Sachs provides a wide range of services worldwide to a substantial and diversified client base that includes corporations, financial institutions, governments and high net worth individuals. Founded in 1869, the firm is headquartered in New York and maintains offices in London, Frankfurt, Tokyo, Hong Kong and other major financial centers around the world.

Source: GSLM Capital Partners

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