Safehold Closes Second Affordable Housing Ground Lease in Texas

Rhea-AI Summary

Safehold (NYSE: SAFE) closed a ground lease for a new Affordable Housing community in Austin, Texas. The 4% LIHTC development with partner The NRP Group is planned to deliver 336 units in 2028.

This is Safehold’s second Austin LIHTC ground lease with NRP in 2026. The project is supported by tax credit equity from Huntington Bank, with construction and permanent financing arranged by Berkadia. Safehold formed a dedicated Affordable Housing team in 2025 and continues to expand investments in this sector.

Positive

• Second Austin 4% LIHTC ground lease with NRP in 2026
• Ground lease underpins 336-unit affordable housing community delivering in 2028
• Dedicated Affordable Housing team formed in 2025 to grow sector investments

Negative

• None.

News Market Reaction – SAFE

-0.32%

-0.32% Session close to close

In the Jun 25 session, SAFE declined 0.32%, reflecting a mild negative market reaction.

Data tracked by StockTitan Argus on the day of publication.

Market Context

This announcement reinforces Safehold’s focus on affordable housing, adding 336 Austin units after e...

Analysis

This announcement reinforces Safehold’s focus on affordable housing, adding 336 Austin units after earlier California LIHTC projects. Investors may track execution, financing choices under the active shelf, and how these ground leases contribute to long-term income growth.

Key Figures

Affordable units: 336 units Delivery year: 2028 Austin deals 2026: Second transaction +5 more

8 metrics

Affordable units 336 units Austin LIHTC community expected upon delivery

Delivery year 2028 Planned completion of Austin affordable housing project

Austin deals 2026 Second transaction Second NRP affordable housing ground lease in Austin this year

LIHTC percentage 4% New construction 4% LIHTC developments with NRP in Austin

NRP developed units 62,000 apartment homes Total developed by The NRP Group since 1994

NRP managed units over 30,000 residential units Currently managed by The NRP Group

NAHB Pillar awards 3 awards NRP wins since 2020 for Development, Construction and Ones to Watch

NRP history since 1994 Year The NRP Group was founded

Historical Context

5 past events · Latest: Jun 15 (Neutral)

Pattern 5 events

Date	Event	Sentiment	24h Move	Catalyst
Jun 15	Debt financing	Neutral	+0.0%	Closed $225M private placement of long-dated senior unsecured notes.
Jun 15	Dividend declaration	Neutral	-0.8%	Declared Q2 2026 common dividend with specified per-share payout and record date.
Jun 11	Strategic joint venture	Positive	-1.7%	Formed joint venture with Brookfield for diversified ground lease portfolio.
May 19	Ground lease deals	Positive	+2.0%	Closed two California affordable housing ground leases totaling 211 units.
May 08	Related-party update	Neutral	+0.5%	Star Holdings results included non-cash mark-to-market impact tied to SAFE shares.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Pattern Detected

Recent news has produced mixed but generally modest price reactions, with one notable divergence on a positive joint venture announcement.

Key Terms

ground lease, low-income housing tax credit (lihtc), reit, tax credit equity

4 terms

ground lease financial

"Safehold Inc. ... has closed on a ground lease for the development of an Affordable Housing community"

A ground lease is a long-term agreement where someone rents land from the owner, often for many decades. The person renting can build on or develop the land, but they don’t own it outright; the land remains owned by someone else. This matters because it affects how property is used and who benefits from its future value.

low-income housing tax credit (lihtc) financial

"The Low-Income Housing Tax Credit (LIHTC) development will provide 336 total units"

A low-income housing tax credit (LIHTC) is a government-created tax break that rewards developers and investors for building or renovating affordable rental housing. Think of it as a long-term coupon that cuts tax bills in exchange for keeping rents below market rates; for investors this lowers project risk, boosts returns, and makes affordable housing projects financially viable where they otherwise might not be.

reit financial

"The Company, which is taxed as a real estate investment trust (REIT), seeks to deliver safe, growing income"

A real estate investment trust (REIT) is a company that owns, operates, or finances income-producing real estate, like shopping centers, apartments, or office buildings. For investors, REITs offer a way to invest in real estate without having to buy property directly, often providing regular income through dividends. They function like a mutual fund for real estate, making it easier for people to add property investments to their portfolio.

tax credit equity financial

"The development is supported by tax credit equity from Huntington Bank"

An arrangement where investors provide capital to a project in exchange for government-issued tax credits that lower the investor’s future tax bill. Think of it like buying a voucher that offsets taxes owed; investors accept some project risk in return for those predictable tax savings. It matters because those credits change the after-tax return and cash needs of an investment, influence project financing, and can make otherwise costly ventures financially viable.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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NEW YORK, June 25, 2026 /PRNewswire/ -- Safehold Inc. (NYSE: SAFE), the creator and leader of the modern ground lease industry, has closed on a ground lease for the development of an Affordable Housing community in Austin, Texas. The Low-Income Housing Tax Credit (LIHTC) development will provide 336 total units upon delivery in 2028. The project will be developed by The NRP Group, one of the most active developers of Affordable Housing in the United States and a repeat Safehold customer.

"We're thrilled to expand our relationship with the team at NRP and our focus on the Affordable Housing market in Texas," said Steve Wylder, Safehold's Head of Investments. "We've established an innovative new ground lease structure for the Texas markets and are pleased our capital could play a role in moving this high-quality development forward."

The transaction represents Safehold's second transaction with NRP in Austin this year, both new construction 4% LIHTC developments. The project is located in northeast Austin, a high-growth region with strong long-term fundamentals and demand for high-quality housing product. The development is supported by tax credit equity from Huntington Bank, with construction and permanent financing arranged by Berkadia. 

Safehold established a dedicated Affordable Housing team in 2025 and has continued to expand its investment into the sector. Additional information is available at www.safeholdaffordablehousing.com.

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.

About The NRP Group:

The NRP Group is a vertically integrated developer, owner, builder, and manager of best-in-class multifamily housing with a mission to create exceptional rental housing communities for individuals and families, regardless of income. Since its founding in 1994, NRP has developed more than 62,000 apartment homes and currently manages over 30,000 residential units. Through its disciplined approach to vetting opportunities, NRP has established a track record of delivering impressive returns for investors. The company's formidable size and depth of talent provide the experience and infrastructure necessary to execute developments of varying degrees of complexity and scope in both urban-infill and suburban locations, including market-rate, affordable, mixed-income, and senior housing. The NRP Group has been consistently named a largest developer and builder in the U.S. on the NMHC "Top 50" lists, the Top 5 on the Multi-Housing News' "Top Multifamily Developers" list, named a Top Affordable Housing Developer by Affordable Housing Finance, and has won three NAHB Pillar awards since 2020 for Development, Construction and Ones to Watch. The NRP Group has become the top multifamily developer in the U.S. that creates both affordable and market-rate housing at a national scale. Based on over 30 years of experience and expertise, NRP provides construction and property management services to outside owners and developers. For additional information, visit www.nrpgroup.com.

Transaction Contacts: Steve Wylder Head of Investments T: 310.315.5566 E: swylder@safeholdinc.com   Michael Mancini Vice President, Investments T: 212.930.9471 E: mmancini@safeholdinc.com

IR Contact:   Pearse Hoffmann SVP, Head of Corporate Finance T: 212.930.9400 E: investors@safeholdinc.com

 

View original content to download multimedia:https://www.prnewswire.com/news-releases/safehold-closes-second-affordable-housing-ground-lease-in-texas-302809796.html

SOURCE Safehold

FAQ

What did Safehold (NYSE: SAFE) announce about its new affordable housing ground lease in Austin?

Safehold announced closing a ground lease for a 336-unit affordable housing community in Austin, Texas. According to Safehold, the 4% LIHTC development is being built with The NRP Group and is expected to be delivered in 2028.

How many units will the new Safehold affordable housing project in Austin (SAFE) include?

The new Austin affordable housing community will include 336 total units. According to Safehold, this 4% LIHTC development is scheduled for delivery in 2028 and is supported by tax credit equity from Huntington Bank and financing arranged by Berkadia.

Who is Safehold’s development partner for the 2028 Austin affordable housing project (SAFE)?

Safehold’s development partner is The NRP Group, a multifamily housing developer. According to Safehold, this is the second 4% LIHTC ground lease with NRP in Austin in 2026, reinforcing their ongoing relationship in affordable housing.

How is the new Safehold Austin LIHTC project (SAFE) being financed?

The project is supported by tax credit equity from Huntington Bank, with financing arranged by Berkadia. According to Safehold, Berkadia is providing both construction and permanent financing for the 336-unit 4% LIHTC affordable housing development.

What role does Safehold’s Affordable Housing team play in the new Austin ground lease (SAFE)?

Safehold’s dedicated Affordable Housing team, formed in 2025, is driving investments like the new Austin ground lease. According to Safehold, this team focuses on growing the company’s presence in affordable housing markets, including LIHTC developments in Texas.

How does the new Austin affordable housing ground lease fit into Safehold’s strategy (SAFE)?

The Austin ground lease supports Safehold’s strategy of expanding modern ground leases in affordable housing. According to Safehold, the company aims to deliver safe income and long-term appreciation by backing high-quality LIHTC developments with experienced partners like The NRP Group.