McCormack Baron Salazar And Goldman Sachs: A partnership for the "revitalization of urban neighborhoods on a national scale"
May 10, 2010 | McCormack Baron Salazar
McCormack Baron Salazar and The Goldman Sachs Urban Investment Group (“Goldman Sachs”) announced on May 10, 2010, a 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 has 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.
“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," Mr. Baron said. "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.
Nearing completion, 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 MacArthur Park, which celebrated its groundbreaking April 12, 2010.
MacArthur Park Apartments is 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.