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.

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.