Safehold Closes Ground Lease for Affordable Housing Development in San Diego
Safehold (NYSE: SAFE), the pioneer of the modern ground lease industry, has secured a ground lease agreement for an affordable housing development in San Diego's Mission Valley area. The Low-Income Tax Credit (LIHTC) project will deliver 227 units by 2028, developed by The Pacific Companies.
This development adds to Safehold's growing portfolio in California, where they have already closed eight ground leases for LIHTC developments, contributing to over 1,600 affordable housing units. The company's innovative ground lease model serves as a low-cost gap filler to facilitate affordable housing development projects.
Safehold (NYSE: SAFE), pioniere nel settore moderno dei contratti di locazione del terreno, ha ottenuto un accordo di locazione per un progetto di edilizia abitativa accessibile nell'area di Mission Valley a San Diego. Il progetto Low-Income Tax Credit (LIHTC) prevede la realizzazione di 227 unità entro il 2028, sviluppato da The Pacific Companies.
Questo sviluppo si aggiunge al crescente portafoglio di Safehold in California, dove ha già concluso otto contratti di locazione del terreno per progetti LIHTC, contribuendo a oltre 1.600 unità abitative accessibili. Il modello innovativo di locazione del terreno dell'azienda funge da soluzione economica per colmare le lacune finanziarie e facilitare lo sviluppo di progetti di edilizia abitativa accessibile.
Safehold (NYSE: SAFE), pionero en la industria moderna de arrendamientos de terrenos, ha asegurado un acuerdo de arrendamiento para un desarrollo de vivienda asequible en el área de Mission Valley en San Diego. El proyecto Low-Income Tax Credit (LIHTC) entregará 227 unidades para 2028, desarrollado por The Pacific Companies.
Este desarrollo se suma al creciente portafolio de Safehold en California, donde ya han cerrado ocho arrendamientos de terrenos para desarrollos LIHTC, contribuyendo a más de 1,600 unidades de vivienda asequible. El modelo innovador de arrendamiento de terrenos de la compañía sirve como un complemento de bajo costo para facilitar proyectos de desarrollo de vivienda asequible.
Safehold (NYSE: SAFE)는 현대 지상 임대 산업의 선구자로서 샌디에이고의 미션 밸리 지역에 위치한 저소득층 주택 개발을 위한 지상 임대 계약을 체결했습니다. 이 저소득층 세액 공제(LIHTC) 프로젝트는 2028년까지 227세대를 공급할 예정이며, The Pacific Companies가 개발합니다.
이번 개발은 Safehold가 캘리포니아에서 이미 LIHTC 개발을 위한 8건의 지상 임대 계약을 체결하며 1,600여 개의 저렴한 주택 단위에 기여한 성장 중인 포트폴리오에 추가됩니다. 회사의 혁신적인 지상 임대 모델은 저비용으로 자금 격차를 메우며 저렴한 주택 개발 프로젝트를 지원합니다.
Safehold (NYSE : SAFE), pionnier de l'industrie moderne des baux fonciers, a conclu un accord de bail foncier pour un projet de logements abordables dans le quartier de Mission Valley à San Diego. Le projet Low-Income Tax Credit (LIHTC) livrera 227 unités d'ici 2028, développé par The Pacific Companies.
Ce développement s'ajoute au portefeuille croissant de Safehold en Californie, où ils ont déjà finalisé huit baux fonciers pour des projets LIHTC, contribuant à plus de 1 600 logements abordables. Le modèle innovant de bail foncier de l'entreprise sert de solution économique pour combler les lacunes financières et faciliter les projets de développement de logements abordables.
Safehold (NYSE: SAFE), Pionier der modernen Bodenleasing-Branche, hat einen Bodenleasing-Vertrag für ein bezahlbares Wohnungsbauprojekt im Mission Valley Gebiet von San Diego gesichert. Das Low-Income Tax Credit (LIHTC) Projekt wird 227 Wohneinheiten bis 2028 bereitstellen, entwickelt von The Pacific Companies.
Diese Entwicklung erweitert Safeholds wachsendes Portfolio in Kalifornien, wo bereits acht Bodenleasing-Verträge für LIHTC-Projekte abgeschlossen wurden und über 1.600 bezahlbare Wohneinheiten entstanden sind. Das innovative Bodenleasing-Modell des Unternehmens dient als kostengünstige Finanzierungslücke zur Unterstützung von bezahlbaren Wohnungsbauprojekten.
- Expansion of affordable housing portfolio with 227 new units in San Diego
- Strong track record with 8 ground leases and 1,600+ units in California LIHTC developments
- Partnership with experienced developer The Pacific Companies
- Strategic positioning in the growing LIHTC space with innovative financing solution
- Extended timeline with project completion not expected until 2028
- Concentration risk with multiple projects in California market
Insights
Safehold expands affordable housing portfolio with new San Diego ground lease, strengthening its LIHTC investments and recurring revenue stream.
Safehold has executed another strategic ground lease transaction, this time for a 227-unit affordable housing development in San Diego's Mission Valley area. This Low-Income Housing Tax Credit (LIHTC) project, scheduled for completion in 2028, represents continued momentum in Safehold's affordable housing initiative. The company is partnering with The Pacific Companies, a repeat customer, indicating relationship strength and execution capability in this specialized sector.
This transaction aligns with Safehold's stated focus on expanding its affordable housing footprint. The company has now closed eight ground leases for LIHTC developments in California, which will deliver over 1,600 affordable units. The growing portfolio demonstrates Safehold's commitment to this defensive asset class while providing long-term, inflation-protected cash flows typical of ground lease investments.
Safehold's ground lease structure serves as what the company describes as a "low-cost gap filler" - effectively providing capital that helps make affordable housing projects financially viable. This positions Safehold advantageously in a sector with persistent supply-demand imbalance and governmental support. As a REIT specializing in ground leases across multiple property types, this transaction reinforces Safehold's diversification strategy while maintaining focus on long-duration, secured income streams from land ownership.
"We're thrilled to expand our relationship with The Pacific Companies and our broader investment into the Affordable Housing sector," said Steve Wylder, Safehold's Head of Investments. "We are increasingly focused on the LIHTC space and are finding our capital—which functions as a low-cost gap filler—can be a very useful tool in moving projects forward and delivering much-needed Affordable Housing."
Safehold has closed on eight ground leases for LIHTC developments in
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:
Head of Investments
Ethan Torbati Vice President, Investments | IR Contact: Pearse Hoffmann SVP, Head of Corporate Finance
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SOURCE Safehold
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