BALTIMORE (WBFF) — Goldman Sachs will be joining the Port Covington redevelopment effort as an equity investor, committing $233 million to the project, the Sagamore Development Company announced Thursday.
Sagamore Development and the Goldman Sachs Urban Investment Group (UIG) have agreed to jointly own the project and develop the infrastructure at the Port Covington site.
“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,” said 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.”
Port Covington is a 235-acre mixed-use redevelopment project that is expected to include residential housing, new businesses and Under Armour’s new headquarters.
“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.” said 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 neighborhood assets that are more connected and accessible through thoughtful planning and modern infrastructure.”
Baltimore’s City Council approved $660 million in bonds to fund the project last September. The agreement also included other benefits for the city including hiring at least 30% of its construction workforce from within the city and making 20% of the rental units available to middle and low-income residents.
The agreement also included funding for education programs, college scholarships, recreation facilities and youth summer jobs.
“This is tremendous news for Baltimore City and our workforce,” said 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.”
This isn’t the first investment from Goldman Sachs in Baltimore. Goldman Sachs and Bloomberg Philanthropies in August committed $10 million to 10,000 small businesses. The program is designed to educate small business owners and open access to capital.
Port Covington is already home to the Sagamore Spirit Distillery, the Rye Street Tavern, City Garage and Nick’s Fish House.