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Goldman Sachs commits $233 mln in Port Covington project

Goldman Sachs has committed $233 million to the Baltimore-based Port Covington redevelopment project. Sagamore Development and the Goldman Sachs Urban Investment Group have agreed to jointly own the project and develop the infrastructure in Port Covington, which will include new residential housing and new businesses. Sidley Austin LLP represented Goldman Sachs on the transaction.


Baltimore, Maryland – Sagamore Development Company announced today that Goldman Sachs has joined the Port Covington redevelopment effort as an equity investor, committing $233 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,” 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.”

“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.”

“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.”

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 catalyze the residential and commercial development of the site.

“The fact that such a major partner is joining us in redeveloping Port Covington speaks volumes,” said 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 honored 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,” said 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 organization that represents the South Baltimore communities of Brooklyn, Cherry Hill, Curtis Bay, Lakeland, Mt. Winans, Westport and Port Covington.

This investment from Goldman Sachs extends the firm’s engagement with Baltimore City, as Goldman Sachs and Bloomberg Philanthropies recently made a $10 million commitment to 10,000 Small Businesses in Baltimore. Bringing the 10,000 Small Businesses program, which includes training and access to capital for small businesses, to Baltimore represents the firm’s holistic approach to investing in cities. Local program partners include the Community College of Baltimore County, Johns Hopkins University, Morgan State University, and Annie E. Casey Foundation.

The joint venture will own and develop the land in Port Covington that is adjacent to the campus of the future global headquarters of Under Armour. Under Armour is not involved in this transaction. Under Armour owns its 50 acres of Port Covington land outright, with a 170,000 square foot high performance workplace already in operation on site, and is developing its campus independently from this joint venture. This joint undertaking also does not include the following operating properties and their related land parcels in Port Covington: City Garage; Nick’s Fish House; Sagamore Spirit Distillery; and Rye Street Tavern.

The team that will implement and execute the infrastructure development in Port Covington will continue to be led by Marc Weller, who has been leading the development team for Port Covington since its inception. Weller is a senior real estate executive with over 20 years of experience developing and building residential, commercial, and mixed-use real estate projects.
Established in 2001, the Urban Investment Group is a business unit within the Goldman Sachs Consumer and Commercial Banking Division. UIG deploys Goldman Sachs’ capital by making investments and loans that benefit urban communities in the United States. To date, UIG has committed approximately $6 billion, facilitating the creation and preservation of over 25,000 housing units, the majority of which are affordable to low, moderate and middle-income families, over 2,000,000 square feet of community facility space over 8,500,000 square feet of commercial, retail, and industrial space, and thousands of permanent and temporary jobs. The team also manages the Access to Capital component of the firm’s 10,000 Small Businesses initiative, which provides practical business education and access to capital for local small business owners

ABOUT PORT COVINGTON: Port Covington is a 235-acre master-planned, mixed-use redevelopment project, with a prime location on the waterfront in Baltimore City. As one of the largest urban renewal efforts in America, the redevelopment of Port Covington will have a fundamental and far-reaching positive impact on Baltimore, its economy and its future. At completion, this 25-year project will include: up to 18 million square feet of new, mixed-use development; 2.5 miles of restored waterfront; and 40 acres of parks and green space for Baltimore City. The Port Covington redevelopment is expected to generate thousands of new jobs, new businesses, better transit, more public parks, improved access to the waterfront, new space for manufacturing, fresh opportunities for innovation and entrepreneurship and more for Baltimore City residents and its local workforce. Port Covington’s location is adjacent to I-95, the East Coast’s most traveled highway, providing convenient and efficient commuting and travel times for the area’s workforce, residents, tourists and other visitors. In addition, Port Covington’s proximity to I-95 offers visibility and accessibility to 42 million cars passing by the site each year. When completed, Port Covington will be a world-class destination and engine for economic growth, with vibrant retail and entertainment options, iconic office buildings, hotels, residential, and waterfront parks. For more information, please visit