in the money
David Hamamoto will getBy Rick Daysog
$12 million in the first year to run
an investment fund
A former isle resident who headed Goldman Sachs & Co.'s real estate business has left the New York investment firm to head a start-up investment fund.
David Hamamoto, who managed Goldman Sach's $1.1 billion Whitehall Street Real Estate Fund, last week became co-head of NorthStar Partners, a newly formed real estate investment venture.
NorthStar is affiliated with UBS Securities Inc., a unit of Union Bank of Switzerland.
Hamamoto and co-head W. Edward Scheetz, formerly a principal with Apollo Real Estate Advisors, each are guaranteed $12.5 million in compensation in the first year of operations, according to Real Estate Finance & Investment, a trade journal.
UBS also has agreed to contribute about $250 million to get the fund going.
Hamamoto could not be reached for comment.
Hamamoto, 38, is the son of former Amfac executive Howard Hamamoto.
For the past several years, the 1977 Punahou graduate has managed the Whitehall Street Fund, which is the real estate investment arm of Goldman Sachs. In 1995, the fund played a role in the Goldman Sach-led buyout of Rockefeller Center Properties Inc. for $306 million.
In Hawaii, the Whitehall Street Fund is part of a group that is buying the 413-room Embassy Suites Resort on Maui for $78 million.
"There's no question (Goldman Sachs) is disappointed in his departure," said Bishop Estate Trustee Henry Peters. "He's done a very good job there."
Bishop Estate, through a for-profit subsidiary, owns a 10 percent state in Goldman Sachs and has invested money in Whitehall Street Fund, Peters said today.
Hamamoto is a 1981 graduate of Stanford University. He received a master's degree in business administration from the University of Pennsylvania's Wharton School in 1983.