Safehold Closes Ground Lease for San Diego Multifamily Development
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.
Safehold (NYSE: SAFE), pioniere nel settore moderno dei contratti di locazione del terreno, ha completato una transazione significativa che include sia un contratto di locazione del terreno sia un prestito su locazione per un nuovo progetto di sviluppo a San Diego. Il progetto riguarda uno sviluppo multifamiliare di 259 unità nel quartiere East Village del centro di San Diego.
Lo sviluppo di otto piani sarà realizzato da Riaz Capital, uno sviluppatore con sede in California che opera tramite il suo fondo per le Zone di Opportunità Qualificate. Questa operazione rappresenta l'espansione strategica di Safehold nel mercato di San Diego e dimostra la loro capacità di offrire soluzioni finanziarie complete che combinano locazione del terreno e capitale di debito.
Safehold (NYSE: SAFE), pionero en la industria moderna de arrendamientos de terrenos, ha completado una transacción significativa que incluye tanto un arrendamiento de terreno como un préstamo sobre arrendamiento para un nuevo proyecto de desarrollo en San Diego. El proyecto consiste en un desarrollo multifamiliar de 259 unidades en el barrio East Village del centro de San Diego.
El desarrollo de ocho pisos será ejecutado por Riaz Capital, un desarrollador con sede en California que opera a través de su fondo de Zona de Oportunidad Calificada. Esta transacción representa la expansión estratégica de Safehold en el mercado de San Diego y demuestra su capacidad para proporcionar soluciones financieras integrales que combinan arrendamiento de terreno y capital de deuda.
Safehold (NYSE: SAFE)는 현대 지상 임대 산업의 선구자로서 샌디에이고에서 새로운 개발 프로젝트를 위한 지상 임대 및 임대차 대출을 포함한 중요한 거래를 완료했습니다. 이 프로젝트는 샌디에이고 다운타운 이스트 빌리지 지역에 위치한 259가구 규모의 다가구 개발을 포함합니다.
8층 규모의 이 개발 사업은 캘리포니아 기반 개발업체인 Riaz Capital이 자격 있는 기회 구역 펀드를 통해 진행합니다. 이번 거래는 샌디에이고 시장에서 Safehold의 전략적 확장과 지상 임대 및 부채 자본을 결합한 종합 금융 솔루션 제공 능력을 보여줍니다.
Safehold (NYSE : SAFE), pionnier de l'industrie moderne des baux fonciers, a finalisé une transaction importante comprenant à la fois un bail foncier et un prêt sur bail pour un nouveau projet de développement à San Diego. Le projet concerne un développement multifamilial de 259 unités dans le quartier East Village du centre-ville de San Diego.
Le développement de huit étages sera réalisé par Riaz Capital, un promoteur basé en Californie opérant via son fonds de zone d'opportunité qualifiée. Cette transaction représente l'expansion stratégique de Safehold sur le marché de San Diego et démontre leur capacité à fournir des solutions de financement complètes combinant bail foncier et capital d'emprunt.
Safehold (NYSE: SAFE), Pionier der modernen Grundstückspachtbranche, hat eine bedeutende Transaktion abgeschlossen, die sowohl einen Grundstückspachtvertrag als auch ein Leasingdarlehen für ein neues Entwicklungsprojekt in San Diego umfasst. Das Projekt beinhaltet eine 259-Einheiten-Mietwohnanlage im Stadtteil East Village in der Innenstadt von San Diego.
Die achtstöckige Entwicklung wird von Riaz Capital, einem in Kalifornien ansässigen Entwickler, der über seinen Qualified Opportunity Zone-Fonds operiert, durchgeführt. Diese Transaktion stellt Safeholds strategische Expansion auf dem San-Diego-Markt dar und zeigt ihre Fähigkeit, umfassende Finanzierungslösungen zu bieten, die Grundstückspacht und Fremdkapital kombinieren.
- 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
- None.
Insights
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.
"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
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
Ethan Torbati Vice President, Investments T: 310.315.5580 | IR Contact:
Pearse Hoffmann SVP, Head of Corporate Finance T: 212.930.9400
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SOURCE Safehold
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