Goldman Sachs is expanding its real estate credit platform with the acquisition of LCN Capital Partners, a New York-based sale-leaseback specialist.

Goldman Sachs agreed to pay $260M to acquire the private real estate firm, with an additional $150M if the firm hits long-dated performance targets. The deal is expected to close by the end of the year and will add a portfolio worth roughly $3B to Goldman Sachs' holdings, the investment giant announced Tuesday. Up to 80% of the acquisition cost will be paid in stock.

“Our team, our strategy, and our commitment to our partners, both capital and corporate, remain unchanged — what changes is the scale of our ambition,” Edward LaPuma, co-founder of LCN Capital Partners, said in a statement. 

LaPuma, his business partner, Bryan York Colwell, and the rest of the LCN team will join the real estate business at Goldman Sachs Asset Management after the acquisition is completed. LaPuma said the acquisition would propel LCN into one of the leading triple-net leasing platforms. 

LCN has offices in New York, Florida, the UK, Germany, Luxembourg and the Netherlands. It has a team of more than 40 and has raised 10 funds. The firm manages six portfolios with more than 375 properties across asset classes in 20 countries, according to its website. 

It specializes in sale-leasebacks, in which tenants sell a property to lease it again from the new owner while unlocking cash, and build-to-suit, triple-net deals. 

Goldman Sachs sees a huge market of untapped properties in the space, with an estimated $14T in corporate-owned properties sitting on balance sheets in North America and Europe and only a fraction leveraging net lease structures, the investment giant said. 

Demand for triple-net investment opportunities is also growing globally, with institutional and insurance investors particularly attracted to its promised stable returns and long-dated deal structures, Goldman Sachs said. 

LCN’s “focus complements our private real estate team’s broad 30-year track record and will expand our ability to serve our insurance, institutional, and wealth client segments,” Goldman Sachs CEO David Solomon said in a statement. 

The sale-leaseback firm was already serving pensions, insurance firms, family offices and high net worth investors prior to the announced acquisition, which Goldman Sachs said will further strengthen LCN’s capital base. 

Net lease properties have been drawing more investor interest in the last couple of years, with transaction volumes in the middle of 2025 totaling $46.7B, up 37% from the prior 12 months. 

GIC, Singapore’s sovereign wealth fund, partnered with net lease REIT Realty Income Corp. in January to provide $1.5B in capital commitments to expand its platform.