HFF Arranges Joint Venture Between The McGregor Company and the Goldman Sachs Urban Investment Group for a Mixed-Use Development in the Arts District of Downtown Los Angeles.

LOS ANGELES -- The Los Angeles office of HFF (Holliday Fenoglio Fowler, L.P.) has arranged up to $28.1 million in joint venture equity for the development of One Santa Fe, a mixed-use apartment project in the Arts District of Downtown Los Angeles, California. The proceeds from the equity raised will be used for the entitlement and development of the project.

HFF senior managing director Paul Brindley and associate Zane Sweet exclusively represented The McGregor Company in securing the joint venture equity with the Goldman Sachs Urban Investment Group (UIG). The McGregor Company is a real estate development, investment and consulting company in Los Angeles. UIG is a private equity vehicle at Goldman Sachs whose mission is to revitalize and improve the urban environment by making catalytic investments in underserved or transitioning neighborhoods.

Due for completion in 2010, One Santa Fe will feature approximately 440 apartment units and 55,000 square feet of ground floor retail and live/work space in four, multi-story, buildings as well as parking for 800 cars in two separate on-site parking garages. The property is located in the dynamic Arts District of downtown Los Angeles across Santa Fe Avenue from the Southern California Institute of Architecture (SCI-Arc), adjacent to the Gold Metro Line and close to Union Station, Little Tokyo and the 101 Freeway. Units will include loft, studio, one, two, three and four-bedroom configurations. It is expected that SCI-Arc students will choose to reside in the subject's three and four-bedroom units.

"The downtown area of Los Angeles continues to undergo significant redevelopment and is seeing an influx of nearly 4,000 residents per year," said Brindley. "The majority of new and proposed developments are condominiums. With recent conversions of rental properties into condominiums, there is exceptional demand for apartment properties such as One Santa Fe."

HFF (NYSE: HF) operates out of 18 offices nationwide and is a leading provider of commercial real estate and capital market services to the U.S. commercial real estate industry. HFF offers clients a fully integrated national capital markets platform including debt placement, investment sales, structured finance, private equity, note sale and note sales advisory services and commercial loan servicing.

The Goldman Sachs Urban Investment Group is part of the Merchant Banking Division within The Goldman Sachs Group, Inc. (NYSE: GS), that invests capital in ethnic minority-owned or targeted businesses and urban real estate. The investments range from $5 million to $50 million across an array of industries, financial structures and urban real estate development projects. Since 2001, UIG Real Estate has invested over $200 million of equity and mezzanine debt representing over $1 billion of urban real estate. It has been a leading private equity partner in the urban market. Founded in 1869, Goldman Sachs is a leading global investment banking, securities and investment management firm. The firm is headquartered in New York and maintains offices in Los Angeles, San Francisco, and Washington, D.C. To learn more about the Goldman Sachs Urban Investment Group, please visit www.gs.com/uig. For media inquiries on UIG, please call Gia Moron in our media relations department at [phone].