The Enterprise Utah's Business Journal
A Salt Lake City real estate investment firm, in partnership with an arm of Goldman Sachs, has reached a significant milestone in its quest to invest in and rebuild rental residences along the Wasatch Front. Restore Utah and The Goldman Sachs Urban Investment Group have partnered to invest $100 million to acquire and renovate over 500 single-family homes and four multifamily properties totaling more than 230 units. The renovated properties are returned to the rental market, focused on low- and moderate-income communities and residents.
“When we launched this partnership with Goldman Sachs in 2012 — a time when many Salt Lake neighborhoods were still suffering from the foreclosure crisis — we focused on acquiring the most blighted homes in Salt Lake and surrounding counties with a particular focus on neighborhoods such as Rose Park, Kearns, Magna, Roy and Ogden,” said Jim Schulte, president of Restore Utah.
“These homes were having a significant impact on house values in the neighborhood and on the families that live there,” Schulte added. “We invested an average of over $30,000 in each home renovation, brought in new tenants and began to see an immediate positive impact on each of these blocks.” Schulte said his company’s efforts were supported by other community partners such the Fair Credit Foundation and Utah Center for Neighborhood Stabilization.
Goldman Sachs and Restore Utah are continuing to invest in multifamily properties throughout the region with a goal of acquiring and renovating another $30 million worth of properties by the end of 2016.
Schulte also pointed to the creation of jobs in a sector that suffered significant job loss during the housing crisis.
“Our partnership with Restore Utah is part of a deep and growing commitment to Utah both through our employment base and support of its urban communities,” saids Margaret Anadu, managing director of the Goldman Sachs Urban Investment Group. “Since its inception in 2012, Restore Utah has revitalized low- and moderate income neighborhoods by transforming vacant or neglected properties hard hit by the financial crisis into quality affordable rental homes for low-income families. The partnership truly exemplifies an innovative solution to addressing the affordable housing need in the local market.”
Goldman Sachs also helped Schulte launch a residential solar installation company, Restore Solar and Electric, with financing from Mountain West Small Business Finance, a partner in Goldman Sachs’ 10,000 Small Businesses program. Restore Solar installs solar panels on the homes in the Restore Utah portfolio.
Restore Utah was founded in 2012 and operates an affiliate construction company.