Affordable Housing

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.

Safehold Affordable Housing in the News

Safehold Closes Ground Lease for Sacramento Affordable Housing Development

Novogradac Journal of Tax Credits: LIHTCs finance conversion of former YMCA office to affordable housing in Santa Clara, CA

Tax Credit Advisor: Ground leases: A vintage structure bridging modern gaps

Nareit: Safehold ground lease structure helping meet demand for affordable housing

Get In Touch

Steve Wylder

Head of Investments
310.315.5566
swylder@safeholdinc.com

Ethan Torbati

Vice President
310.315.5580
etorbati@safeholdinc.com

Michael Mancini

Vice President
212.930.9461
mmancini@safeholdinc.com

Market Rate