Safehold (NYSE: SAFE) Advances Affordable Housing with New Ground Lease in Los Angeles

Safehold Strengthens Commitment to Affordable Housing with New Ground Lease in Los Angeles

Safehold Inc. (NYSE: SAFE), a frontrunner in the modern ground lease sector, announces the successful closure of a ground lease for an Affordable Housing community in the San Fernando Valley, Los Angeles. This project, anticipated to deliver 275 housing units by 2029, is developed by The Pacific Companies, a prominent player in the Affordable Housing arena and a long-standing partner of Safehold. The collaboration highlights Safehold’s strategic focus on addressing the pressing need for affordable rental housing in high-demand areas, particularly as costs and interest rates pose challenges for new developments.

Steve Wylder, Safehold's Head of Investments, emphasizes the significance of this partnership, noting the critical demand for affordable housing solutions in the region. This initiative aligns with Safehold’s broader objective to expand its footprint in the Affordable Housing sector, a commitment reinforced by the establishment of a dedicated Affordable Housing team in 2025. Wylder points out that Safehold's ground lease capital acts as a low-cost "gap filler," providing essential financial support to facilitate the development of affordable units, making it a vital player in the current housing landscape.

With its innovative approach, Safehold aims to transform real estate ownership, focusing on diverse property types, including multifamily and mixed-use developments. The company’s commitment to offering land value solutions enhances its ability to provide safe and growing income opportunities for its stakeholders. To further this initiative, Safehold has launched a specific platform for Affordable Housing on its website, signaling its intent to play a pivotal role in addressing the ongoing housing crisis. This development represents a significant milestone for Safehold and underscores its dedication to meeting the evolving needs of communities.

In addition to this project, Safehold continues to explore various opportunities within the real estate sector, reinforcing its position as a leader in land leasing. By partnering with established developers like The Pacific Companies, the company showcases its strategy of leveraging collaborative efforts to tackle housing shortages effectively. This move not only enhances Safehold's investment portfolio but also contributes to the broader social imperative of providing affordable living spaces in urban settings.