Safehold Closes Ground Lease for Massachusetts Multifamily Development
Rhea-AI Summary
Safehold Inc. (NYSE: SAFE) has announced the closure of a ground lease agreement for The Benjamin, a new 364-unit multifamily development project in the Boston metropolitan area. This marks Safehold's first collaboration with The Michaels Organization, a prominent national multifamily investor and developer. The deal reinforces Safehold's growing presence in the multifamily sector, where it currently maintains over 85 assets across major U.S. markets.
As the pioneer of the modern ground lease industry since 2017, Safehold specializes in providing innovative real estate ownership solutions that help property owners maximize value and generate higher returns with reduced risk. The company operates as a Real Estate Investment Trust (REIT) and focuses on high-quality properties across various sectors including multifamily, office, industrial, hospitality, and life science.
Positive
- First partnership with The Michaels Organization, a major national multifamily developer
- Expansion of portfolio in the strategic Boston MSA market
- Growing presence in multifamily sector with over 85 assets across top U.S. markets
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- None.
Insights
Safehold expands its ground lease portfolio with a new 364-unit multifamily development in Boston, demonstrating continued market penetration and business model validation.
Safehold's newly closed ground lease for The Benjamin development in Boston represents a strategic expansion of its multifamily portfolio in a prime metropolitan statistical area (MSA). The deal carries particular significance as it marks Safehold's first transaction with The Michaels Organization, a major national multifamily player, potentially opening doors for future collaborations and recurring revenue streams.
This transaction adds to Safehold's already substantial multifamily footprint, which now exceeds 85 assets across top U.S. markets. The company's ground lease model provides a compelling value proposition for developers by unlocking land value while offering lower-cost, long-term capital compared to traditional financing structures. This approach allows developers to potentially improve returns while maintaining operational control of their properties.
For multifamily developers facing challenging market conditions with elevated interest rates and construction costs, Safehold's ground lease solution represents an attractive alternative capital source. By separating land ownership from building ownership, developers can reduce their upfront capital requirements and potentially enhance their project returns.
The steady expansion of Safehold's portfolio, particularly in the multifamily sector, demonstrates continued market validation of their innovative ground lease model. Each new transaction further establishes Safehold's position as the pioneer in modernizing the traditionally fragmented ground lease industry, while generating growing, secure income streams backed by land ownership – one of the most fundamentally secure real estate investments.
"We're pleased to see the growing adoption of our ground lease solution for multifamily projects in top MSAs," said Tim Doherty, Safehold's Chief Investment Officer. "We're committed to delivering low-cost, long-term capital to help owners execute their business plans and maximize value."
"We continue to see our structure unlock efficiencies for ground-up developments and look forward to the opportunity to expand our relationship," added Michael Paresky, Vice President at Safehold.
Safehold's diversified portfolio of modern ground leases includes over 85 multifamily assets across the top markets 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: | IR Contact: |
Tim Doherty Chief Investment Officer | Pearse Hoffmann SVP, Head of Corporate Finance |
Michael Paresky Vice President, Investments |
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SOURCE Safehold
FAQ
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