Safehold Closes Four Ground Leases for Affordable Multifamily Assets

Rhea-AI Summary

Safehold (NYSE: SAFE), a pioneer in the ground lease industry, has concluded ground leases to develop four affordable housing communities in Northern California. This expansion encompasses 781 units spread across three San Jose locations and one in Concord, California. Partnering with The Pacific Companies, a notable affordable housing developer, these projects aim to address significant demand for low-income housing. During Q2 2024, Safehold closed six ground lease transactions and has invested $6.5 billion in ground leases to date. Safehold leverages its strong balance sheet to drive innovation and meet market needs, enhancing its footprint in the affordable housing sector.

Positive

• Safehold closed ground leases for four affordable housing projects totaling 781 units in Northern California.
• Safehold has invested $6.5 billion in ground leases to date.
• Safehold closed six ground lease transactions in Q2 2024, demonstrating increased activity.
• Partnership with The Pacific Companies enhances Safehold's presence in the affordable housing market.

Negative

• No immediate financial metrics, such as revenue or profit changes, were disclosed.

NEW YORK, July 8, 2024 /PRNewswire/ -- Safehold Inc. (NYSE: SAFE), the creator and leader of the modern ground lease industry, has closed on ground leases to facilitate the ground-up development of four affordable housing communities in Northern California. The low-income tax credit developments total 781 units across four locations: three in San Jose and one in Concord, California. The projects will be built by The Pacific Companies, a prolific and highly experienced developer of affordable housing throughout the Western United States.

"We are thrilled to expand our relationship with The Pacific Companies, and to play a role in meeting the significant unmet demand for affordable housing," said Safehold's EVP, Head of Investments Steve Wylder. "We have quickly expanded our presence in the affordable housing space, and are finding that our long-term, low-cost ground lease capital can help to fill gaps, drive a lower cost of capital, and help high-quality projects like these move forward."

Safehold closed a total of six ground lease transactions during the second quarter of 2024.

"We have closed $6.5 billion of ground lease investments to date and are encouraged by recent dialogue with the market," added Safehold's Chief Investment Officer Tim Doherty. "We will continue to use our strong balance sheet to scale our platform across the country, with the ability to innovate and meet market and client needs."

About Safehold:

Safehold Inc. (NYSE: SAFE) is revolutionizing real estate ownership by providing a new and better way for owners to unlock the value of the land beneath their buildings. Having created the modern ground lease industry in 2017, Safehold continues to help owners of high quality multifamily, office, industrial, hospitality, student housing, life science and mixed-use properties generate higher returns with less risk. The Company, which is taxed as a real estate investment trust (REIT), seeks to deliver safe, growing income and long-term capital appreciation to its shareholders. Additional information on Safehold is available on its website at www.safeholdinc.com.

Transaction Contacts:   Steve Wylder EVP, Head of Investments T: 310.315.5566 E: swylder@safeholdinc.com   Ethan Torbati Vice President, Investments T: 310.315.5580 E: etorbati@safeholdinc.com

Investment Team and IR Contacts:   Tim Doherty Chief Investment Officer T: 212.930.9433 E: tdoherty@safeholdinc.com   Pearse Hoffmann Senior Vice President Capital Markets & Investor Relations T: 212.930.9400 E: investors@safeholdinc.com

 

View original content to download multimedia:https://www.prnewswire.com/news-releases/safehold-closes-four-ground-leases-for-affordable-multifamily-assets-302191172.html

SOURCE Safehold

FAQ

What did Safehold announce on July 8, 2024?

Safehold announced the closing of ground leases for four affordable housing communities in Northern California.

How many units are included in Safehold's recent ground lease transactions?

Safehold's recent ground lease transactions include a total of 781 units across four locations.

Which areas in California are involved in Safehold's new ground leases?

Safehold's new ground leases involve three locations in San Jose and one in Concord, California.

Who is Safehold partnering with for the affordable housing projects?

Safehold is partnering with The Pacific Companies for the affordable housing projects.

How much has Safehold invested in ground leases to date?

Safehold has invested $6.5 billion in ground leases to date.

How many ground lease transactions did Safehold close in Q2 2024?

Safehold closed six ground lease transactions in Q2 2024.