Safehold Announces Ground Lease for 336 Affordable Housing Units in Austin, Texas

Safehold Inc. (SAFE) announces a major development in the affordable housing sector with the closing of a ground lease aimed at creating 336 affordable housing units in Austin, Texas. This project, part of the Low-Income Housing Tax Credit (LIHTC) program, is scheduled for completion by 2028 and represents a significant commitment by Safehold to improve housing availability in a growing region. Partnering with the experienced developer The NRP Group, Safehold highlights its strategy to tackle the pressing need for quality affordable housing in urban areas. Steve Wylder, Safehold's Head of Investments, points out the bespoke ground lease structure designed specifically for the Austin market, reflecting the company’s dedication to responsive and innovative real estate solutions.

Strategic Partnerships Propel Affordable Housing Focus

The ongoing collaboration between Safehold and NRP illustrates a strategic focus on the affordable housing market that the company has pursued since establishing a dedicated Affordable Housing team in 2025. Notably, this marks the second partnership with NRP in Austin within a single year, underscoring the rapid progress Safehold is making in this sector. The development is strategically located in northeast Austin, an area currently experiencing robust urban growth and a consistent demand for affordable housing options. Safehold’s investment strategy not only maximizes the value of the land but also mitigates risks associated with property ownership through innovative financing and development structures.

Financial Backing and Commitment to Community Development

This ground lease initiative is supported by financial backing from Berkadia, handling both construction and permanent financing, alongside tax equity contributions from Huntington Bank. As Safehold expands its footprint in the affordable housing sector, it continues to not only cater to shareholders with secure income and capital appreciation but also plays a crucial role in addressing societal needs for affordable living spaces. The company’s approach combines ground lease innovations with strategic investments, effectively transforming the landscape of real estate ownership since its founding in 2017.