Goldman Sachs to juice cash-strapped RE owners with $3B fund

By Keith Larson

Big money will be deployed into cash-deprived real estate funds that have been hit by the coronavirus pandemic.

Goldman Sachs announced it closed a $2.75 billion fund, known as Vintage Real Estate Partners II, vastly exceeding the investment firm’s $1.25 billion target. The fund will target the real estate secondaries market, such as limited partnerships and other real estate funds that need capital in order to stay afloat or make new deals.

The announcement comes at a time when many real estate owners have been impacted by the coronavirus and stay at home orders throughout the country. Retail and hotel property owners have been particularly hit hard by the pandemic and have left owners struggling to make debt payments.

Goldman Sachs managing directors Harold Hope and Sean Brenan said an area of focus is on real estate owners who need liquidity in order to weather the economic downturn.

“There are going to be some good properties that have some short-term struggles and they are going to need additional capital,” said Hope. “We partner with the owners of those properties… to allow them to get to the other side of COVID.” More…