Goldman Sachs Announces Investment in New Orleans Mixed-Income Housing Project
Funding to Help Rebuild C.J. Peete Apartments Destroyed by Hurricane Katrina
New Orleans, January 7, 2009—The Goldman Sachs Group, Inc. (NYSE: GS) today announced a significant investment in the rebuilding of the C.J. Peete Apartments Housing Complex. The announcement was made at a groundbreaking ceremony for the new development, which was also attended by Secretary of Housing and Urban Development Steve Preston, New Orleans Mayor Ray Nagin, General Douglas O’Dell, federal coordinator for Gulf Coast Rebuilding, as well as representatives of the Housing Authority of New Orleans, the state of Louisiana, and the City of New Orleans.
The firm’s investment will help develop a residential rental community consisting of 460 units in 116 residential buildings, as well as a community center. A substantial portion of the project will consist of rent restricted units that will be set aside for low income households and former C.J. Peete residents.
“We recognize the potential new capital can play in overlooked and underdeveloped sections of urban America,” said Lloyd C. Blankfein, Chairman and Chief Executive Officer of the Goldman Sachs Group, Inc. “The C.J. Peete project is a compelling opportunity to invest not only for an economic return, but also in the revitalization and growth of a community.”
The C.J. Peete Apartments were originally built in 1941 and grew into one of the largest public housing communities in New Orleans. Hurricane Katrina left much of the complex uninhabitable. Today, the reconstruction of affordable housing is a critical component in the redevelopment of New Orleans.
The Goldman Sachs investment was coordinated by the firm’s Urban Investment Group.
“Natural disaster has exacerbated an urgent need for high quality, affordable housing in New Orleans,” said Alicia Glen, Managing Director and head of Goldman Sachs’ Urban Investment Group. “We are honored to be a part of this joint effort between the public and private sectors to invest capital that will also create jobs and catalyze the revitalization of this community."
The Goldman Sachs Group, Inc. 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.
The Goldman Sachs Urban Investment Group is part of the Merchant Banking Division within The Goldman Sachs Group, Inc. (NYSE: GS). It invests the firm’s capital in real estate projects and operators in emerging or transitional urban areas. The investments range from $5 million to $75 million. Since 2001, UIG has committed over $350 million of equity and mezzanine capital towards the development of more than $1.5 billion of urban mixed-use and mixed-income real estate projects. To learn more about the Goldman Sachs Urban Investment Group, please visit www.gs.com/uig.