Safehold Closes Ground Lease for Affordable Housing Development in Los Angeles

Rhea-AI Summary

Safehold (NYSE: SAFE) closed a ground lease for a Low Income Tax Credit affordable housing development in the San Fernando Valley, Los Angeles.

The project, developed by The Pacific Companies, will deliver 275 units in 2029. Safehold said it created a dedicated Affordable Housing team in 2025 and is expanding its affordable housing pipeline, positioning its ground-lease capital as a low-cost "gap filler" amid elevated costs and interest rates.

Positive

• 275-unit affordable housing development planned for 2029
• Repeat developer relationship with The Pacific Companies
• Dedicated Affordable Housing team established in 2025

Negative

• Project not scheduled for delivery until 2029
• Company cites elevated costs and interest rates as challenges for developments

Insights

Real Estate Capital Markets Analyst

Safehold closed a ground lease for a 275-unit affordable housing project in Los Angeles, expanding its affordable housing platform.

Safehold closed a ground lease in the San Fernando Valley for an Affordable Housing development that will deliver 2029 and total 275 units. The project is being developed by The Pacific Companies, described as a repeat Safehold customer. Safehold also established a dedicated Affordable Housing team in 2025.

The business mechanism is straightforward: Safehold provides ground-lease capital that the release describes as a low-cost "gap filler" to support developments facing elevated costs and interest rates. That structure can preserve developer equity while keeping project land ownership separate from improvements.

Key dependencies and risks are explicit in the release: project delivery timing to 2029, reliance on The Pacific Companies for execution, and the continuing validity of elevated cost and interest-rate conditions the release cites. The announcement does not disclose lease terms, financing amounts, or specific sponsor guarantees, so material financial exposure and timing remain unspecified.

Items to watch over the next milestone horizon include construction progress toward 2029, any disclosures of ground-lease economics or capital committed, and updates from Safehold’s Affordable Housing platform about pipeline conversion. Those items will clarify the transaction’s contribution to Safehold’s earnings and portfolio scale.

NEW YORK, Oct. 27, 2025 /PRNewswire/ -- Safehold Inc. (NYSE: SAFE), the creator and leader of the modern ground lease industry, has closed on a ground lease for the development of an Affordable Housing community in the San Fernando Valley area of Los Angeles, California. The Low Income Tax Credit development will provide 275 total units upon delivery in 2029. The project will be developed by The Pacific Companies, a prolific developer of Affordable Housing throughout the Western United States and a repeat Safehold customer.

"We're excited to expand our relationship with The Pacific Companies with this high-quality asset, in a market with significant unmet demand for Affordable rental product," said Steve Wylder, Safehold's Head of Investments. "We are quickly growing our presence in the Affordable Housing space, where we are very encouraged by the demand for our ground lease capital and the growth in our forward pipeline."

Safehold established a dedicated Affordable Housing team in 2025, with the goal of expanding its investment into the sector.

"Our ground lease capital functions as a low-cost 'gap filler' in these developments, at a time when elevated costs and interest rates are posing significant challenges," Wylder added.

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

 

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SOURCE Safehold

FAQ

What did Safehold (SAFE) announce on October 27, 2025 about Los Angeles housing?

Safehold closed a ground lease for a Low Income Tax Credit affordable housing project in the San Fernando Valley that will deliver 275 units in 2029.

Who is developing the 275-unit affordable housing project leased by SAFE?

The project will be developed by The Pacific Companies, a repeat Safehold customer.

How does Safehold describe its role in the affordable housing project (SAFE)?

Safehold said its ground-lease capital functions as a low-cost gap filler to help developments amid higher costs and rates.

When did Safehold establish its Affordable Housing team mentioned in the SAFE announcement?

Safehold established a dedicated Affordable Housing team in 2025.

Does the Safehold (SAFE) press release give financial details or transaction size for the ground lease?

No; the announcement describes the ground lease and project scope but does not disclose transaction value or financing terms.