Safehold Closes Ground Lease for Sacramento Affordable Housing Development

Rhea-AI Summary

Safehold Inc. (NYSE: SAFE) has closed a ground lease for the development of The Crawford, a 265-unit affordable housing community in Roseville, Sacramento, California. The project will be developed by USA Properties Fund, a repeat Safehold customer based in Sacramento.

The development is structured as a low-income tax credit project. During 2024, Safehold completed six affordable housing transactions in California. The company is increasingly focusing on the affordable housing sector, utilizing its ground lease structure to help developers reduce capital costs and advance affordable housing projects.

Safehold, established in 2017, operates as a REIT and specializes in creating modern ground lease solutions for various property types, including multifamily, office, industrial, hospitality, student housing, life science, and mixed-use properties.

Positive

• Expansion in affordable housing sector with six California transactions in 2024
• Strategic partnership with established developer (USA Properties Fund)
• Entry into high-growth market (Roseville) with strong demographics
• Diversification of portfolio with 265-unit development project

Negative

• None.

NEW YORK, Jan. 15, 2025 /PRNewswire/ -- Safehold Inc. (NYSE: SAFE), the creator and leader of the modern ground lease industry, has closed on a ground lease to facilitate the ground-up development of The Crawford, an affordable housing community in the Roseville area of Sacramento, California. The low-income tax credit development will include 265 units. The project will be built by USA Properties Fund, Inc., a highly experienced developer based in the Sacramento area, and a repeat Safehold customer.

"We're thrilled to expand our relationship with USA Properties, and to continue growing our presence in the affordable housing space," said Steve Wylder, Safehold's Head of Investments.

"Roseville is a high growth market with strong demographics and a real need for affordable housing – we're excited to be a part of this project," added Ethan Torbati, Vice President at Safehold.

Safehold closed a total of six affordable housing transactions in California during 2024. The benefits of Safehold's ground lease structure for affordable housing developments were recently highlighted in an article by Tax Credit Advisor: Ground Leases: A Vintage Structure Bridging Modern Gaps.

"We are increasingly focused on the affordable sector and are positioning our capital as a tool to help developers bridge capital structure gaps, lower their cost of capital, and move much needed affordable housing projects forward," said Wylder.

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:	Investment Team and IR 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	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

 

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SOURCE Safehold

FAQ

What is the size of Safehold's new affordable housing development in Sacramento?

The Crawford development in Roseville, Sacramento will include 265 affordable housing units.

How many affordable housing transactions did Safehold (SAFE) complete in California during 2024?

Safehold completed six affordable housing transactions in California during 2024.

Who is developing The Crawford project for Safehold (SAFE) in Sacramento?

USA Properties Fund, Inc., a Sacramento-based developer and repeat Safehold customer, will build The Crawford project.

What type of financing structure is being used for The Crawford development by Safehold (SAFE)?

The Crawford is being developed as a low-income tax credit development with a ground lease structure provided by Safehold.

How does Safehold's (SAFE) ground lease structure benefit affordable housing developments?

Safehold's ground lease structure helps developers bridge capital structure gaps, lower their cost of capital, and advance affordable housing projects more efficiently.