NEW YORK–(BUSINESS WIRE)– Safety, Income & Growth Inc. (NYSE:SAFE), the leading company focused on ground leases, announced it has originated two new ground leases totaling $50 million with The Dilweg Companies.
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Dilweg utilized a SAFE Ground Lease™ to successfully recapitalize Regency Lakeview, a two-building office campus comprising 376k square feet on 27 acres in Cary, NC. The property is in the center of the vibrant “Research Triangle” between Raleigh, Durham, and Chapel Hill. Regency Lakeview has convenient access to US-64 offering a short drive to Raleigh-Durham International Airport and downtown Raleigh. The campus is currently undergoing a nearly $6 million renovation to further enhance the space.
In addition, SAFE’s custom-tailored ground lease facilitated Dilweg’s acquisition of Pershing Point, a 7-story, 410k square foot office building on Peachtree Street in Midtown Atlanta. The property is well-located in a top 10 MSA and has excellent access to I-75, I-85, and GA-400 via the Peachtree Street Connector. Dilweg plans to invest approximately $19 million in capital and tenant improvements to reposition the asset as creative office space.
The SAFE Ground Lease™ provided low-cost, long-duration solutions that enabled Dilweg to unlock value and achieve better returns at both properties.
“These transactions show how a well-structured, modern SAFE Ground Lease™ can be employed to create value for customers at acquisition and recapitalization. The low-cost, flexible structure is immediately accretive, particularly when compared to alternative financing options,” said Tim Doherty, Head of Ground Lease Investments. “We are building momentum as the marketplace is realizing how our brand of ground leases offers an innovative way for our clients to maximize their returns.”
Safety, Income & Growth Inc. (NYSE: SAFE) is the first publicly traded company that focuses on acquiring, owning, managing and capitalizing ground leases. The Company seeks to provide safe, growing income and capital appreciation to shareholders by building a diversified portfolio of high quality ground leases. The Company, which is taxed as a real estate investment trust (REIT), is managed by its largest shareholder, iStar Inc.Additional information on SAFE is available on its website at www.safetyincomegrowth.com.
Source: Safety, Income & Growth Inc.
Safety, Income & Growth
Jason Fooks, 212-930-9400
Vice President of Investor Relations & Marketing