Safehold Closes Ground Lease for San Diego Multifamily Development

Rhea-AI Summary

Safehold (NYSE: SAFE), the pioneer of the modern ground lease industry, has completed a significant transaction involving both a ground lease and leasehold loan for a new development project in San Diego. The project involves a 259-unit multifamily development in the East Village neighborhood of Downtown San Diego.

The eight-story development will be executed by Riaz Capital, a California-based developer operating through their Qualified Opportunity Zone fund. This transaction represents Safehold's strategic expansion in the San Diego market and demonstrates their capability to provide comprehensive financing solutions combining ground lease and debt capital.

Positive

• Expansion into growing Downtown San Diego submarket with high-quality development
• Strategic partnership with new developer Riaz Capital
• Diversification of financing offerings through combined ground lease and debt capital solutions

Negative

• None.

Insights

Real Estate Investment Analyst

Safehold expands its portfolio with a strategic ground lease for a 259-unit San Diego multifamily development, strengthening its market presence.

Safehold's latest ground lease transaction for a 259-unit multifamily development in Downtown San Diego's East Village represents a strategic expansion of their portfolio in a key California market. The deal structure is particularly noteworthy as it includes both a ground lease and leasehold loan, showcasing the company's ability to offer comprehensive financing solutions across the capital stack.

This transaction with Riaz Capital, a California-based developer operating through a Qualified Opportunity Zone fund, demonstrates Safehold's continued execution of its business model in the competitive multifamily sector. The East Village neighborhood has been experiencing revitalization, making this an opportunistic entry point in an improving submarket with potential for long-term appreciation.

The structure of this deal highlights Safehold's evolving strategy of not just providing ground leases (which separate land ownership from building ownership) but expanding into complementary financing solutions. This approach potentially allows them to capture additional yield while maintaining the security of land ownership that underlies their business model.

For shareholders, this transaction represents ongoing portfolio growth and diversification across geography and partnership networks. By establishing a relationship with Riaz Capital, Safehold continues to expand its developer network, which could lead to additional deal flow. The San Diego market expansion also enhances their geographic diversification while maintaining focus on urban multifamily assets, which have historically demonstrated resilience in various economic conditions.

NEW YORK, June 26, 2025 /PRNewswire/ -- Safehold Inc. (NYSE: SAFE), the creator and leader of the modern ground lease industry, has closed on a ground lease and leasehold loan for the ground-up development of a 259-unit multifamily development in the East Village neighborhood of Downtown San Diego. The eight-story project will be developed by Riaz Capital, a California-based developer and operator investing on behalf of their Qualified Opportunity Zone fund.

"This is a high-quality development in an improving Downtown submarket," said Steve Wylder, Safehold's Head of Investments. "We're pleased to establish a relationship with the Riaz team and grow our presence in the San Diego market. We've continued to seek out opportunities to provide customers with compelling full cap stack financing solutions, including both ground lease and debt capital."

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: 212.930.9433 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 is the size of Safehold's new multifamily development project in San Diego?

The project consists of a 259-unit multifamily development in an eight-story building located in the East Village neighborhood of Downtown San Diego.

Who is developing Safehold's new San Diego multifamily project?

Riaz Capital, a California-based developer and operator, is developing the project through their Qualified Opportunity Zone fund.

What type of financing is Safehold (NYSE: SAFE) providing for the San Diego development?

Safehold is providing a combined financing solution that includes both a ground lease and leasehold loan for the development.

Where is Safehold's new multifamily development located in San Diego?

The development is located in the East Village neighborhood of Downtown San Diego, which is described as an improving Downtown submarket.

What is Safehold's (NYSE: SAFE) main business model?

Safehold is the creator and leader of the modern ground lease industry, helping property owners unlock the value of land beneath their buildings while providing safe, growing income and long-term capital appreciation to shareholders.