Goldman offering mortgages as perks to bonus-less bankers

TRD New York /
Jan.January 29, 2010 04:06 PM

With cash bonuses still in — relatively — short supply in the aftermath of the recession, Goldman Sachs seems to be doing its part to limit the cutbacks’ impact on luxury real estate. Gawker took a look at New York City property records this week and found that Goldman started lending to individual residential property owners in mid-2008, just as the financial system was beginning to collapse. There were 17 instances in total where Goldman is listed as the secured party on residential property transactions in the city; half of those involved employees of the firm. In late October 2008, managing director Oliver Frankel took out one such “hassle-free” mortgage from his employer for a co-op in Tribeca’s 34 Leonard Street, where units were selling between $2 million and $8 million earlier that year. Goldman has also granted loans to managing director T. Clark Munnell for his $6.6 Million Park Avenue apartment, to banking technology manager Lancelot Braunstein, who bought a $2.1 million co-op in September, and to vice president Justin Lee for his $1.9 million Chelsea apartment, among others. Terms of the mortgages are not public, but the company recently told the Wall Street Journal that it has allowed “a small number of employees” to take out mortgages, that they carry normal interest rates and that they must be paid back. Gawker did uncover the terms of one particularly high-profile mortgage, though. Rodney Martin, the chief operating office of AIG’s life insurance unit was lent $4 million in April 2008 for a $4 million apartment at 15 Central Park West, courtesy of new neighbor and Goldman CEO Lloyd Blankfein’s company. The 30-year mortgage had a 4.8 percent interest rate and was interest-only for the first 10 years. [Gawker]

Related Articles

Jho Low and the Time Warner Center at 25 Columbus Circle (Credit: Getty Images)

Financier at center of 1MDB fraud case agrees to give up hundreds of millions of dollars

70 Pine Street and Goldman Sachs chairman Lloyd Blankfein (Credit: Wikipedia and Getty Images)

Goldman Sachs refis Art Deco apartment conversion at 70 Pine with $386M loan

From left: 220 Park Avenue South, 15 Central Park West, 520 Park Avenue, 35 Hudson Yards, Sting, Juan Beckmann Vidal, Daniel Och, Bob Diamond, and Stephen Ross (Credit: Getty Images, Wikipedia, StreeEasy, and Google Maps)

Serial buyers trade “old” condos for new on Billionaires’ Row

247 Metropolitan Avenue in Williamsburg (Credit: The Pod Hotel)

Goldman Sachs provides $90M loan to refinance hotel in Williamsburg

Sam Chang and 40 West 45th Street (Credit: Google Maps and iStock)

Sam Chang can now purchase 160 elite racing pigeons

15 Central Park West and Och-Ziff Capital Management founder Daniel Och (Credit: StreetEasy and Getty Images)

Daniel Och wants $12K a foot for his 15 Central Park West penthouse

Wells Fargo, JPMorgan Chase and Citigroup each recorded a rise in second quarter profits in their consumer divisions (Credit: iStock)

Banks see uptick in mortgages, but remain wary ahead of potential Fed interest rate cut

Uber founder Travis Kalanick (Credit: Getty Images and iStock)

Investors bet on restaurants’ move to