Helping affordable housing projects move forward.

Low-Cost Ground Lease Capital for Affordable Housing Development

Safehold is proud to support the development industry in its attempt to meet the significant unmet demand for Affordable Housing throughout the U.S. Our long-term, highly accretive capital helps to maximize the impact of government resources and fill capital structure gaps, allowing projects to move forward.

4%/9% LIHTC

Ground-up development + acquisition/rehab

Transaction size
$30M+ total value/cost

National focus
Top ~30 MSAs

The Structure

Key Benefits

Remove cost of land, improve feasibility and tiebreaker scores
Gap Filler – 10-20% increase in permanent period proceeds (Ground Lease + Loan)

Attractive cost of capital, without additional amortization

Case Study

Ground-up development of a 200-unit multifamily asset in Santa Clara, California. Developed with 4% Low Income Tax Credits and subject to 60% Average Median Income restrictions. 

  • Developer: The Pacific Companies
  • Tax Credit Investor: Bank of America
  • Construction Lender: Bank of America + Citibank
  • Permanent Lender: Citibank

Safehold’s ground lease helped to bridge a capital structure gap, allowing the Pactific Companies to move forward with a high-quality project and deliver much-needed affordable housing.

Get In Touch

Steve Wylder

Ethan Torbati

Michael Mancini