Better capital

better returns

A Safehold® Ground lease maximizes your returns

Safehold® ground leases offer a more efficient capital solution relative to fee simple ownership, requiring less equity and delivering attractive long-term, risk-adjusted returns.

UNLOCKing EMBEDDED VALUE
FOR OWNERS, OPERATORS & DEVELOPERS

fee simple

with Safehold® Ground Lease

$35.0M Equity

35% of Property Value

$22.7M Equity

35% of Building Value

$65.0M Loan

4.25% Fixed Rate, 10yr Term
65% of Property Value

$42.3M Loan

4.25% Fixed Rate, 10yr Term
65% of Building Value

$35.0M Safehold®

3.5% Initial Yield

Enhanced returns

$100.0M

Same Fee Simple Purchase Price at 5.25%

$100.0M

$35.0M

35% Less Equity Required

$22.7M

5.25%

18% increase in Unlevered Yield

6.19%

7.1%

38% increase in Cash-on-Cash Returns

9.8%

12.7%

42% higher IRRs (10 Year Hold)

18.0%

2.63X

41% higher Multiples (10 Year Hold)

3.71X

UNLOCKing EMBEDDED VALUE
FOR OWNERS, OPERATORS &DEVELOPERS

fee simple

With Safehold® GROUND LEASE

$35.0M Equity

35% of Property Value

$22.7M Equity

35% of Building Value

$65.0M Loan

$65.0M Loan
‍‍
3.50% Fixed Rate, 10yr Term
65% of Property Value

$42.3M Loan

3.50% Fixed Rate, 10yr Term
65% of building value

$35.0M Safehold®

3.25% Initial Yield

Enhanced returns

Same Fee Simple Purchase Price at 4.75%

Fee Simple

Ground Lease

$100.0M

35% Less Equity Required

Fee Simple

Ground Lease

$35.0M

$22.7M

17% increase in Unlevered Yield

Fee Simple

Ground Lease

4.75%

5.56%

32% increase in Cash-on-Cash Returns

Fee Simple

Ground Lease

7.1%

9.4%

40% higher IRRs (10 Year Hold)

Fee Simple

Ground Lease

12.4%

17.3%

39% higher Multiples (10 Year Hold)

Fee Simple

Ground Lease

2.59x

3.59x

A capital advantage in a competitive market

Our modern ground lease structure is a stable, predictable, long-term capital source that eliminates interest rate and refinancing risk – enhancing equity value relative to alternative capitalization methods.

enhanced return ProfilE

Safehold® ground leases deliver increased cash-on-cash returns and overall IRRs relative to fee simple capital structures, while offering substantial tax advantages for leasehold owners.

leasehold lender-friendly

Our carefully constructed ground lease has been approved by numerous leading lenders, including banks, CMBS, life companies and agencies.

No Friction Costs

With a Safehold® ground lease in place, customers eliminate sizable financing fees, transfer fees and mortgage recording fees – now and in the future.

Custom-Tailored to unlock value

Our manager, iStar, has built its reputation on helping partners find creative solutions for over two decades. We work to carefully create a properly sized, properly structured ground lease to unlock the most value for the building owner. We're equipped to close quickly and committed to giving our customers a competitive edge.

Versatile lease structure

Our modern ground lease works with all property types — including multifamily, office, hospitality, industrial — and provides better capital at all points in a property’s life cycle — at construction, at recapitalization or refinancing, or when a sale or purchase is planned.

Gateway Trophy Office

Multifamily Development

Repeat Customers

Multifamily Acquisition

A ONE-STOP CAPITAL SOLUTION

The SAFE x STAR program offers a powerful combination of a Safehold® ground lease and either leasehold mortgage or leasehold equity capital from iStar, Safehold’s founder and manager, within the same transaction. Customers benefit from a customized, streamlined capital solution with lower costs, reduced maturity risk and flexible structuring options in comparison to other alternatives.

Out with the old, in with the New

Many building owners are living with archaic ground leases that destroy value. We work with owners to convert these outdated and problematic leases into new, customer-friendly, value-enhancing Safehold™ ground leases.

“Safehold created an innovative capital solution that has changed the way the industry thinks about capitalization. They’re leading the way as this redefined product type continues to scale.”

- ADAM SPIES, Chairman of Capital Markets, Cushman & Wakefield

“We saw the Safehold ground lease structure as a way to materially improve our risk-adjusted returns and set up a win for our investors.”

- ANTHONY DILWEG, CEO/Founder, The Dilweg Companies

“I had been following the bifurcated ownership model and was put in touch with the Safehold team to look at two deals we had under contract. The proposal from Safehold just made economic sense.”

- ANDY STONE, Managing Partner, Admiral Capital Group

contact us

We target the top 25 MSAs in the United States with national coverage broken down by five regions: East Coast, West Coast, Southeast, Midwest and Texas

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contact us

We target the top 30 MSAs in the United States with coverage by region:
East Coast, Northwest, Southwest, Midwest and South Central

Contact

East Coast / Midwest

NorthWest

SOUTHWEST

Texas

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Better capital

better returns

A Safehold® Ground lease maximizes your returns

UNLOCKing EMBEDDED VALUE FOR OWNERS, OPERATORS & DEVELOPERS

fee simple

with Safehold® Ground Lease

$35.0M Equity

$22.7M Equity

$65.0M Loan

$42.3M Loan

$35.0M Safehold®

Enhanced returns

$100.0M

Same Fee Simple Purchase Price at 5.25%

$100.0M

$35.0M

35% Less Equity Required

$22.7M

5.25%

18% increase in Unlevered Yield

6.19%

7.1%

38% increase in Cash-on-Cash Returns

9.8%

12.7%

42% higher IRRs (10 Year Hold)

18.0%

2.63X

41% higher Multiples (10 Year Hold)

3.71X

UNLOCKing EMBEDDED VALUE FOR OWNERS, OPERATORS &DEVELOPERS

fee simple

With Safehold® GROUND LEASE

$35.0M Equity

$22.7M Equity

$65.0M Loan

$65.0M Loan‍‍3.50% Fixed Rate, 10yr Term65% of Property Value

$42.3M Loan

3.50% Fixed Rate, 10yr Term65% of building value

$35.0M Safehold®

3.25% Initial Yield

Enhanced returns

Same Fee Simple Purchase Price at 4.75%

$100.0M

$100.0M

35% Less Equity Required

$35.0M

$22.7M

17% increase in Unlevered Yield

4.75%

5.56%

32% increase in Cash-on-Cash Returns

7.1%

9.4%

40% higher IRRs (10 Year Hold)

12.4%

17.3%

39% higher Multiples (10 Year Hold)

2.59x

3.59x

A capital advantage in a competitive market

enhanced return ProfilE

leasehold lender-friendly

No Friction Costs

Custom-Tailored to unlock value

Versatile lease structure

Case studies

Gateway Trophy Office

Multifamily Development

Repeat Customers

Multifamily Acquisition

A ONE-STOP CAPITAL SOLUTION

Out with the old, in with the New

contact us

contact us

East Coast / Midwest

NorthWest

SOUTHWEST

Texas

UNLOCKing EMBEDDED VALUE
FOR OWNERS, OPERATORS & DEVELOPERS

UNLOCKing EMBEDDED VALUE
FOR OWNERS, OPERATORS &DEVELOPERS

$65.0M Loan
‍‍
3.50% Fixed Rate, 10yr Term
65% of Property Value

3.50% Fixed Rate, 10yr Term
65% of building value