Goldman Sachs to Acquire Sale-Leaseback Firm for Up to $410 Million

Goldman Sachs is expanding its real estate credit platform through the acquisition of LCN Capital Partners, a sale-leaseback specialist based in New York. The investment giant agreed to pay $260 million for the firm, with an additional $150 million if it meets long-dated performance targets. This deal will add a portfolio worth roughly $3 billion to Goldman Sachs' holdings and is expected to close by the end of the year.

The acquisition cost will be split, with up to 80% paid in stock. Edward LaPuma, co-founder of LCN Capital Partners, stated that the team's strategy and commitment to partners remain unchanged, but the scale of their ambition has changed. He added that the deal will propel LCN into one of the leading triple-net leasing platforms.

LCN Capital Partners specializes in sale-leasebacks, where tenants sell a property to lease it again from the new owner while unlocking cash. It also offers build-to-suit and triple-net deals. Goldman Sachs sees a huge market for untapped properties in this space, with an estimated $14 trillion in corporate-owned properties sitting on balance sheets in North America and Europe.