SAFE News & Events

Safehold has closed on a $45M ground lease for the development of an Affordable Housing community in the Soquel area of Santa Cruz, California. Santa Cruz is a vibrant coastal community located along the Monterey Bay, with significant unmet demand for high quality Affordable Housing. The project will be developed by The Pacific Companies, a prolific development firm and repeat Safehold customer. The Low-Income Housing Tax Credit development will provide a total of 256 units upon delivery in 2028. Wells Fargo and Citi Community Capital provided both construction financing and tax credit equity, with Citi providing permanent financing for the project. The project represents Safehold's second recent Affordable Housing ground lease in the Santa Cruz area and is part of a broader effort to expand the firm's focus on the Affordable sector.

Safehold has formed a joint venture with a Brookfield affiliate on a portfolio of ground leases. The assets contributed by Safehold are diversified across the U.S. and generate current annualized cash ground rent of approximately $14M. Brookfield will purchase a non-controlling 49% interest in the venture at a gross valuation of approximately $348M. Safehold will retain a series of call options beginning after year 7 to repurchase Brookfield's interest. Under the terms of the agreement, Safehold will maintain day-to-day control and management of the assets. Brookfield's investment will be recognized as an equity non-controlling interest. Safehold will use net proceeds for debt repayment and general corporate purposes.