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Jonathan Rose Companies and Goldman Sachs Announce Affordable Housing Private Equity Fund

^{Published on 2010-09-16 07:11:46 - Market Wire}
 

NEW YORK--([ BUSINESS WIRE ])--TheGoldman Sachs Group, Inc. (NYSE: GS) through its Urban Investment Group (UIG) announced today it has committed $23 million to a new fund sponsored by Jonathan Rose Companiesa™ Investment Practice. The fund, Rose New Jersey Green Affordable Housing Preservation Fund LLC, will acquire existing, CRA-eligible affordable housing in mass-transit accessible locations throughout New Jersey, with a focus on Hudson and Essex Counties. The fund will preserve the affordability of these assets for the long term.

"We are very excited about the opportunity to bring the economic, social and environmental benefits of green retrofits to affordable housing projects in New Jersey. Together with Goldman Sachs, we can have a meaningful impact on the lives of lower-income families."

The Rose New Jersey Green Affordable Housing Preservation Fund will improve assets through a agreena capital improvement and operations program, seeking to replicate the success of 107-145 West 135th Street in Harlem, NY, a portfolio asset of the Rose Smart Growth Investment Fund which has become a national model for the greening and preservation of affordable housing. The Rose New Jersey Green Affordable Housing Preservation Fund will obtain third-party verification of its work through LEED or Enterprise Green Community Standards.

The fund builds upon Jonathan Rose Companiesa™ deep commitment to New Jersey. The firm is currently Master Planner to the cities of Newark and Morristown and has served as program manager for the Housing Authority of the City of Elizabetha™s (HACE) 2004 HOPE VI revitalization plan. The firm is continuing its work with HACE to develop a 31-unit senior building that integrates affordable housing with supportive services.

aWe are delighted to be working with Goldman Sachs and continue our efforts to benefit the lower-income families of New Jersey. Lower-income families spend a disproportionate share of their income on housing, home energy and transportation. There is an increasing need for quality affordable housing in urban areas, near convenient forms of mass-transit,a said Jonathan F.P. Rose, President of Jonathan Rose Companies. aWe are very excited about the opportunity to bring the economic, social and environmental benefits of green retrofits to affordable housing projects in New Jersey. Together with Goldman Sachs, we can have a meaningful impact on the lives of lower-income families.a

UIG deploys the firma™s capital to help transform underserved U.S. communities into sustainable and vibrant neighborhoods of choice and opportunity. UIG is a business platform with a mission to revitalize and improve urban environments by making loans, investments and grants that benefit low- and moderate-income people and communities. The group has extensive experience with market-rate, mixed-income and affordable housing projects, as well as with public-private partnerships that stimulate mixed-use development. Since its inception in 2001, UIG has committed nearly $1.2 billion to revitalize underserved urban communities. This investment has facilitated the creation and preservation of approximately 9,000 housing units a" 75% of which are affordable to low, moderate and middle-income families a" as well as 630,000 sq. ft. of community facility and approximately 900,000 sq. ft. of commercial and retail space.

aThe Urban Investment Group has traditionally focused on affordable housing development, but also recognizes the critical importance of affordable housing preservation,a said Alicia Glen, Managing Director and Head of the Urban Investment Group at Goldman Sachs. aAs part of our firma™s comprehensive approach to community and neighborhood revitalization, this fund will not only preserve affordable housing, but it will also improve the quality and environmental sustainability of New Jerseya™s affordable housing stock. We are thrilled to launch this fund with our partners to help stabilize neighborhoods and communities in New Jersey and help keep it an affordable place to live.a

aTodaya™s changing regulatory climate and uncertain financial markets require thoughtful consideration of environmental and social factors that impact the bottom-line and create long-term value,a said Wendy Rowden, Managing Director of Jonathan Rose Companiesa™ Investment Practice, who along with Nathan Taft will direct the acquisitions team for the new fund. aGoldman Sachs recognizes, as do we, that green retrofits can reduce costs for owners and tenants, mitigate greenhouse gas emissions and provide healthier living environments, all while revitalizing existing communities. We expect to see a number of well-located CRA-eligible housing projects that can benefit from practical green upgrades with a reasonable investment payback.a

About Jonathan Rose Companies LLC: Jonathan Rose Companies LLC is an award-winning real estate investment, development, planning and ownera™s representative firm whose mission is to repair the fabric of communities. It is the first firm in the U.S. to successfully build an investment platform targeting the acquisition and green transformation of existing buildings, including affordable housing, through its Rose Smart Growth Investment Fund. A leading green urban solutions provider, the firm currently manages the development of over $1.3 billion of projects, much of it in close collaboration with not-for-profits, cities and towns. The firm is recognized for its ability to achieve visionary goals through practical, affordable strategies. Jonathan Rose Companies has offices in Connecticut, New York, Colorado and New Mexico. For more information, visit [ www.rosecompanies.com ].

About Goldman Sachs Group, Inc.: Goldman Sachs Group, Inc. is a leading global investment banking, securities and investment management firm that provides a wide range of financial services 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.