Safehold Closes $45 Million Affordable Housing Ground Lease in Santa Cruz, California

Safehold (NYSE: SAFE) closed a $45 million ground lease to support development of a 256-unit Affordable Housing community in the Soquel area of Santa Cruz, California.

Rhea-AI Summary

Safehold (NYSE: SAFE) closed a $45 million ground lease to support development of a 256-unit Affordable Housing community in the Soquel area of Santa Cruz, California. The Low-Income Housing Tax Credit project, developed by The Pacific Companies, is expected to deliver in 2028.

Wells Fargo and Citi Community Capital are providing construction financing and tax credit equity, with Citi also providing permanent financing. This is Safehold's second recent Affordable Housing ground lease in the Santa Cruz area and aligns with its broader Affordable Housing focus.

Positive

• $45 million Affordable Housing ground lease closed in Santa Cruz
• Project to deliver 256 units of Affordable Housing by 2028
• Second recent Affordable Housing ground lease in Santa Cruz area
• Supports expansion of Safehold's Affordable Housing platform and customer base

Negative

• None.

Argus Jun 24 session

+1.35% close to close Open Argus

Details

News Market Reaction – SAFE

On Jun 24, the first trading day after this news, SAFE closed 1.35% above the previous close.

Data tracked by StockTitan Argus for the Jun 24 session.

Market Context

This announcement extends Safehold’s Affordable Housing push with a $45M Santa Cruz ground lease sup...

Analysis

This announcement extends Safehold’s Affordable Housing push with a $45M Santa Cruz ground lease supporting 256 units by 2028. It follows earlier California affordable deals; key watchpoints are execution, future financing under the active shelf, and sector-wide REIT sentiment.

Key Figures

Ground lease size: $45 million Affordable units: 256 units Project delivery: 2028

Ground lease size

$45 million

Affordable Housing ground lease in Soquel area of Santa Cruz, CA

Affordable units

256 units

Low-Income Housing Tax Credit development to be delivered in 2028

Project delivery

2028

Expected completion year for the Santa Cruz Affordable Housing community

Historical Context

5 past events · Latest: Jun 15

5 events

1. Jun 15

   Debt private placement

   24h Move

   +0.0%

   Issued $225M long-dated unsecured notes to fund corporate and investment needs.

2. Jun 15

   Dividend declaration

   24h Move

   -0.8%

   Declared Q2 2026 common dividend, maintaining regular REIT capital return cadence.

3. Jun 11

   Joint venture formed

   24h Move

   -1.7%

   Formed Brookfield JV monetizing a ground lease portfolio with $14M cash rent.

4. May 19

   Affordable leases signed

   24h Move

   +2.0%

   Closed two California affordable housing ground leases totaling 211 units for 2028 delivery.

5. May 08

   Affiliate earnings impact

   24h Move

   +0.5%

   Star Holdings results included SAFE-related mark-to-market loss affecting its EPS.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

ground lease, low-income housing tax credit, construction financing, permanent financing

4 terms

ground lease financial

"Safehold Inc. ... has closed on a $45 million ground lease for the development"

A ground lease is a long-term agreement where someone rents land from the owner, often for many decades. The person renting can build on or develop the land, but they don’t own it outright; the land remains owned by someone else. This matters because it affects how property is used and who benefits from its future value.

low-income housing tax credit regulatory

"The Low-Income Housing Tax Credit development will provide a total of 256 units"

A low-income housing tax credit is a government incentive that gives a dollar-for-dollar reduction in federal taxes to people or firms that invest money into building or renovating rental housing for lower-income renters. Think of it like buying a tax coupon that helps fund affordable apartments: investors put up capital in exchange for steady rental income and a predictable cut in the taxes they owe, making these projects more financially attractive and lowering risk for lenders and investors.

construction financing financial

"Wells Fargo and Citi Community Capital provided both construction financing and tax credit equity"

A short-term loan used to pay for the costs of building or renovating a property, with funds released in stages as work is completed and the work itself serving as the lender’s security. It matters to investors because the availability, terms, and management of construction financing determine whether a project finishes on time and on budget, affecting cash flow, returns and the risk that cost overruns or delays will erode or eliminate expected profits — like a pay-as-you-go loan that must be managed to keep a building project moving.

permanent financing financial

"with Citi providing permanent financing for the project"

Permanent financing is long-term funding meant to stay in place for the life of an asset or business need, replacing short-term or temporary loans. Think of swapping a temporary ladder for a permanent staircase: it reduces the need to refinance, stabilizes payments and cash flow, and gives investors clearer visibility on interest costs, repayment risk and the company’s ability to fund operations or growth over time.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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NEW YORK, June 23, 2026 /PRNewswire/ -- Safehold Inc. (NYSE: SAFE), the creator and leader of the modern ground lease industry, has closed on a $45 million ground lease for the development of an Affordable Housing community in the Soquel area of Santa Cruz, California. Santa Cruz is a vibrant coastal community located along the Monterey Bay, with significant unmet demand for high quality Affordable Housing. The project will be developed by The Pacific Companies, a prolific development firm and repeat Safehold customer.

"This is a high-quality, large-scale community in a high-cost coastal submarket with significant unmet demand for Affordable Housing," said Steve Wylder, Safehold's Head of Investments. "We're excited to expand our relationship with The Pacific Companies and are pleased our ground lease capital could play a role in helping to deliver this project."

The Low-Income Housing Tax Credit development will provide a total of 256 units upon delivery in 2028. Wells Fargo and Citi Community Capital provided both construction financing and tax credit equity, with Citi providing permanent financing for the project. The project represents Safehold's second recent Affordable Housing ground lease in the Santa Cruz area and is part of a broader effort to expand the firm's focus on the Affordable sector.

"We're positioning our capital as a tool to help move these projects forward," Wylder added. "In the face of elevated rates and stubbornly high construction costs, our structure can help fill capital structure gaps and deliver much needed Affordable Housing."

Additional information on Safehold's Affordable Housing platform is available at www.safeholdaffordablehousing.com.

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, affordable housing, 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 Head of Investments T: 310.315.5566 E: swylder@safeholdinc.com Ethan Torbati Vice President, Investments T: 310.315.5580 E: etorbati@safeholdinc.com

IR Contact:   Pearse Hoffmann SVP, Head of Corporate Finance T: 212.930.9400 E: investors@safeholdinc.com

View original content to download multimedia:https://www.prnewswire.com/news-releases/safehold-closes-45-million-affordable-housing-ground-lease-in-santa-cruz-california-302808087.html

SOURCE Safehold

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What did Safehold (NYSE: SAFE) announce about its new Santa Cruz ground lease on June 23, 2026?

Safehold announced closing a $45 million ground lease for a new Affordable Housing community in Soquel, Santa Cruz. According to Safehold, the Low-Income Housing Tax Credit project will support development of 256 units with delivery expected in 2028.

How many Affordable Housing units will Safehold's $45 million Santa Cruz ground lease support?

The ground lease will support 256 Affordable Housing units in the Soquel area of Santa Cruz. According to Safehold, the community is structured as a Low-Income Housing Tax Credit development with completion targeted for 2028, addressing unmet demand in a high-cost coastal market.

Who is developing the Affordable Housing project tied to Safehold's $45 million ground lease (SAFE)?

The project will be developed by The Pacific Companies, a repeat Safehold customer. According to Safehold, this prolific development firm is leading the 256-unit Low-Income Housing Tax Credit community in Soquel, expanding an existing relationship between the two companies.

What role do Wells Fargo and Citi Community Capital play in Safehold's Santa Cruz Affordable Housing deal?

Wells Fargo and Citi Community Capital are providing construction financing and tax credit equity for the project. According to Safehold, Citi will also supply permanent financing, complementing Safehold's $45 million ground lease within the overall capital structure of the 256-unit development.

How does the new Santa Cruz ground lease fit into Safehold's Affordable Housing strategy?

The transaction is Safehold's second recent Affordable Housing ground lease in the Santa Cruz area. According to Safehold, it is part of a broader effort to expand the firm's focus on the Affordable Housing sector through its specialized capital structure.

When is the Affordable Housing community supported by Safehold's $45 million Santa Cruz ground lease expected to be delivered?

The 256-unit Affordable Housing community is expected to be delivered in 2028. According to Safehold, the project leverages a Low-Income Housing Tax Credit structure and ground lease capital to advance development in a high-cost coastal submarket with unmet housing demand.