Goldman Sachs has announced a definitive agreement to purchase LCN Capital Partners, a private real estate investment firm, in a transaction that could reach a total value of $410 million.

LCN is a commercial real estate investment manager with approximately $3 billion in assets under management, specializing in sale-leaseback transactions. Under this model, LCN purchases properties from other companies and immediately leases them back to the original owners, with the tenant responsible for taxes and other associated costs.

Goldman Sachs disclosed on Tuesday that it will make an initial payment of roughly $260 million as part of the deal, with an additional $150 million contingent on the firm's future performance. Approximately 80% of the total consideration will be settled in stock. The transaction is expected to close before the end of this year.

According to the company's website, LCN targets investments ranging from $20 million to $400 million, with a footprint spanning North America and Europe. The firm concentrates on industrial, office, retail, and special-purpose properties. Headquartered in New York, LCN was co-founded in 2011 by Ed Lapuma, who previously led the international operations of W.P. Carey Inc.

This acquisition positions Goldman Sachs to tap into a rapidly expanding segment of the real estate market. The niche has drawn significant interest from asset managers, offering dual revenue streams from property ownership and corporate credit. In a net lease investment structure, the investor holds title to the property while the tenant pays rent and typically covers expenses such as taxes, insurance, and maintenance.

"LCN's differentiated platform is highly attractive to our asset management and wealth management clients who seek diversified income streams, as well as providing innovative capital solutions for our corporate clients," said David Solomon, Chief Executive Officer of Goldman Sachs.

This marks the Wall Street bank's second acquisition within a week. Earlier, Goldman Sachs agreed to pay up to $2.25 billion for NEOS Investments, a firm managing $30 billion in assets that specializes in actively managed exchange-traded funds.