The Goldman Sachs Group, Inc. (NYSE: GS) held a groundbreaking ceremony today in San Francisco with Mayor Gavin Newsom for 5800 Third Street, a mixed-income 340 unit condominium project, located on the site of a former Coca-Cola bottling plant.
This is the second investment in San Francisco’s Bayview-Hunters Point neighborhood headed by the Goldman Sachs Urban Investment Group (UIG). The project, which includes approximately 20,000 square feet of retail space, is conveniently located at a stop on the new Third Street “T” rail line. U.K.-based grocer Fresh and Easy will anchor the retail space, bringing quality groceries and fresh food to a neighborhood that has lacked essential services for decades.
Mayor Newsom a supporter of projects like 5800 Third Street said, “I applaud the Goldman Sachs Urban Investment Group for its vision and I am excited that an institution like Goldman Sachs is making a long term commitment to this city. A development like 5800 Third Street is critical for the revitalization for this area and the broader Bayview community.” Newsom continued, “This project represents exactly the kind of growth we are trying to encourage across the City."
Lloyd C. Blankfein, Chairman and Chief Executive Office of The Goldman Sachs Group Inc. said, “Our Urban Investment Group makes investments in neighborhoods around the country to help transform them into more vibrant places to live. We work with municipalities and local operating partners to build housing and other properties for the benefit of ethnically and economically diverse communities. We are particularly proud of this project because it really captures the spirit of what we are trying to achieve not only in San Francisco, but nationally.”
Between the Heights at Candlestick Point and 5800 Third Street developments, Goldman Sachs has invested over $50 million dollars in the future vitality of the Southeastern section of San Francisco. “A project like 5800 Third Street demonstrates our firm’s commitment to using our own capital to bring moderately priced, quality housing that working families can afford and much needed retail space to neighborhoods that have suffered from disinvestment. It also shows how the public and private sectors can work together to really make a difference,” said Alicia Glen, Managing Director and head of Goldman Sachs’ Urban Investment Group.
During the entitlement process, 5800 Third Street benefited from the support of the Bayview Project Area Committee, the elected body of community residents advising the City of San Francisco on redevelopment of the area. San Francisco Mayor Gavin Newsom and district Supervisor Sophie Maxwell have also been strong supporters of the project.
“A big reason for the strong community support is the $750,000 community benefits package that was negotiated during the entitlement process to enhance youth job training, senior services, first-time homeownership opportunities and local business ventures. We look forward to honoring those commitments and to becoming an integral part of the revitalization of this fantastic, underserved neighborhood,” Jim Noteware, of Noteware Development, concluded.
About Goldman Sachs Urban Investment Group
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 invested over $250 million of equity capital representing over $1.3 billion of urban real estate. Founded in 1869, Goldman Sachs is a leading global investment banking, securities and investment management firm. The firm is headquartered in New York and maintains offices in Los Angeles, San Francisco, and Washington, D.C. To learn more about the Goldman Sachs Urban Investment Group, please visit www.gs.com/uig.
About Noteware Development
Noteware Development, a Houston-based, nationally recognized builder of moderately-priced family housing, is establishing a strong presence in San Francisco. The firm specializes in building housing in emerging urban areas. In addition to its San Francisco projects, Noteware currently has residential projects under development in Phoenix and Las Vegas. Additional information about Noteware Development can be found at www.notewaredevelopment.com.