BRP Companies, a real estate investment and development firm, announced that it will launch a $75 million investment fund that will leverage upwards of $250 million of new residential development around the New York City metropolitan area and New Jersey.
The announcement comes as BRP completed an initial closing with Goldman Sachs Urban Investment Group (GSUIG), which will provide the equity in conjunction with other high net-worth individuals.
Known as the “GS BRP Urban Joint Venture,” the fund will produce superior risk-adjusted investment returns through the acquisition, development, repositioning, management, and disposition of a diversified portfolio of mixed-use, mixed-income residential properties in New York City and Westchester County, NY and Northern New Jersey.
“Our team’s experience and track record in successfully navigating the complexities of urban markets uniquely qualifies us to achieve attractive risk-adjusted returns for our investors.” said Geoff Flournoy, managing partner of BRP Companies.
“We are bolstered by investors’ confidence and look forward to the exciting projects and opportunities this fund will create.”
The fund continues a successful relationship between BRP Companies and GSUIG, which already has completed more than $140 million of development throughout New York City and Philadelphia and has projects valued at $260 million currently in construction.
”We are excited to expand our already strong relationship with BRP Companies in this new venture,” said Margaret Anadu, managing director at Goldman Sachs.
“BRP’s thoughtful approach to comprehensive community development is consistent with the mission of the Goldman Sachs Urban Investment Group and the investments will bring much needed housing, retail, and community facilities to underserved neighborhoods.”
The fund will invest between $5 million and $30 million of equity in energy efficient, sustainable, transit-oriented developments situated in urban infill locations.
“The launch of this fund could not be timed better,” said Meredith Marshall, Managing Partner of BRP Companies.
“The growing – and largely unmet – demand for workforce housing in the New York City area will make this fund a catalyst for many new and exciting opportunities.”