Goldman Sachs has joined Sagamore Development Company’s Port Covington redevelopment effort as an equity investor, committing USD233 million to the project, the largest single private equity investment made by the firm’s Urban Investment Group to date.
Port Covington is a 235-acre master-planned, mixed-use redevelopment project, with a prime location on the waterfront in Baltimore, and is expected to create thousands of new jobs, build new residential housing, attract new businesses, and provide new opportunities for Baltimore City residents and its workforce.
“This is tremendous news for Baltimore City and our workforce,” says Baltimore City Mayor Catherine Pugh. “Baltimore is seeing more major national investment in our real estate market. This investment, especially from such a prominent partner as Goldman Sachs, means more jobs, more opportunity and more economic growth for Baltimore City. Investors are seeing what we already know about Baltimore: we’re a city on the rise, and an economic hub with a strong, diverse workforce. This is significant progress for the Port Covington project.”
“It was important to us to find an equity partner that shared our common vision for urban economic growth, job creation and local workforce development here in Baltimore City,” says Tom Geddes, CEO of Plank Industries. “Goldman Sachs Urban Investment Group, with its history of mission-driven and impactful investments in urban areas is the perfect partner and investor for Port Covington and Baltimore City as a whole. This is a significant step forward and delivers on a major promise by the Port Covington development team to bring outside private investment and commercial capital to Baltimore City.”
“Baltimore is one of the country’s greatest cities. We are proud to be a part of, and build upon, its rich legacy and heritage,” says Margaret Anadu, Goldman Sachs managing director and head of the Urban Investment Group. “Given their incredible dedication, partnering with the Sagamore team on Port Covington affords us the opportunity to be a part of Baltimore’s exciting future. This unprecedented public-private partnership will provide Baltimoreans with new jobs and neighbourhood assets that are more connected and accessible through thoughtful planning and modern infrastructure.”
Sagamore Development and the Goldman Sachs Urban Investment Group (UIG) have entered into an agreement to jointly own the project and develop the infrastructure in Port Covington. The infrastructure construction will catalyse the residential and commercial development of the site.
“The fact that such a major partner is joining us in redeveloping Port Covington speaks volumes,” says Marc Weller, the real estate developer behind Port Covington. “We promised we’d bring in outside private institutional investors to Baltimore City and to Port Covington, and we have. We’re honoured to have Goldman Sachs UIG as our partner going forward and excited for all the continued progress happening in Port Covington.”
In addition to securing outside investment from Goldman Sachs UIG, the Port Covington development team has also negotiated robust, comprehensive community benefits agreements with the City and the surrounding communities, providing a model for similar developments. The agreements were constructed via an extensive community engagement process and detail the developer’s commitments related to local hiring and workforce development initiatives, supplier diversity, affordable housing and funding for education programs, college scholarships, recreation facilities and youth summer jobs. All obligations and commitments entered into for the Port Covington redevelopment during, and since, the Tax Increment Financing (TIF) process will remain in effect and be fulfilled as required and as promised.
“The entire Port Covington team continues to deliver on promises,” says Cherry Hill resident and Chairman of the South Baltimore Seven (SB7) Coalition, Michael Middleton. “They are in constant contact with us, and their genuine commitment to the future of our communities is above and beyond anything I’ve ever seen from a development team. In choosing Goldman Sachs’ Urban Investment Group, they’ve brought in a partner that shares their commitment, passion and dedication to impactful community investing and local workforce development.” The SB7 Coalition is an organisation that represents the South Baltimore communities of Brooklyn, Cherry Hill, Curtis Bay, Lakeland, Mt Winans, Westport and Port Covington.
