Unlock
Embedded Value
Safehold’s ground lease enables building owners to generate a stronger return profile and lower cost of capital with less risk, while reducing upfront equity requirements.
Maximizing Returns
With a Safehold ground lease, leasehold owners benefit from increased cash-on-cash returns and substantial tax advantages.
With a Safehold ground lease, leasehold owners benefit from increased cash-on-cash returns and substantial tax advantages.
Better Capital to Unlock Embedded Value
For Owners, Operators and Developers
Illustrative Example:
Safehold’s ground lease creates value and liquidity
Same $100 M Asset
Pricing as of Nov '23
How Safehold Ground Lease Works
A Safehold ground lease offers a stable, long-term capital solution. It requires less equity than fee simple ownership, minimizes refinancing risk, and delivers accretive returns.
Versatile Structure
Provides a better capital solution for all property types at all points of an asset's life cycle: construction, recapitalization, refinancing, sale, and purchase.
Lender Approved
Safehold’s ground lease solution has been executed alongside numerous leading lenders, including banks, CMBS, life companies and agencies. Combine a Safehold ground lease with leasehold financing to drive a blended cost of capital below traditional financing, with reduced debt and equity required.
No Friction Costs
Eliminates sizable financing fees, transfer fees, and mortgage recording fees over the ground lease term.
Accelerating Success
Safehold’s ground lease can help drive stronger cash flow yields, enabling building owners to realize more of their equity return from cash flow and drive meaningfully higher round-trip returns on exit.
Win More Deals
Bid more aggressively by manufacturing a higher cap rate with less equity and debt required upfront. A Safehold ground lease can be your competitive, structural advantage.
Exceptional Returns
Drive a better cash-on-cash yield and increase your operating value as Safehold takes on the cost of land and leases it back to you—freeing your building from low-yielding land.
Reduced Risk
Reduce uncertainty of maturity risk as Safehold provides ultra-long term capital at a low cost—predictable year after year, even in an uncertain world or during a down market.
Accelerating Success
Safehold’s ground lease can help drive stronger cash flow yields, enabling building owners to realize more of their equity return from cash flow and drive meaningfully higher round-trip returns on exit.
Bid more aggressively by manufacturing a higher cap rate with less equity and debt required upfront. A Safehold ground lease can be your competitive, structural advantage.
Drive a better cash-on-cash yield and increase your operating value as Safehold takes on the cost of land and leases it back to you—freeing your building from low-yielding land.
Reduce uncertainty of maturity risk as Safehold provides ultra-long term capital at a low cost—predictable year after year, even in an uncertain world or during a down market.
Custom Ground Lease Products
Ground Lease Plus
Pre-Development Stage
Applying Safehold’s modern ground lease structure to development transactions has unlocked new potential and allows Safehold to participate in earlier stages of a property’s life cycle.
The Ground Lease Plus program gives Safehold the opportunity to purchase ground leases that underlie projects currently in the pre-development stage once they reach the shovel-ready stage.
The inherent new construction nature of this product promotes green building given that many of the developments are expected to be built to environmentally responsible building standards.
SAFExSWAP
Legacy Ground Lease Conversion
Many building owners are living with legacy ground leases that lack the innovative, modernized structure of Safehold’s customer-friendly structure.
The SAFE x SWAP program enables Safehold to work with property owners to convert their outdated and problematic ground leases into a new and value enhancing Safehold ground lease.
SAFExSELL
Accretive Ground Lease at Exit
The SAFE x SELL program expands Safehold’s mission to unlock value at all stages of an asset’s life cycle by helping customers sell their properties more efficiently.
Much like how Safehold ground leases unlock value upon acquisition, recapitalization, and development of a property, they can also increase overall value when building owners sell their property - the combination of a Safehold ground lease and accompanying leasehold can generate more sale proceeds than selling the property outright.
Custom Ground Lease Products
Ground Lease Plus
Pre-Development Stage
Applying Safehold’s modern ground lease structure to development transactions has unlocked new potential and allows Safehold to participate in earlier stages of a property’s life cycle.
The Ground Lease Plus program gives Safehold the opportunity to purchase ground leases that underlie projects currently in the pre-development stage once they reach the shovel-ready stage.
The inherent new construction nature of this product promotes green building given that many of the developments are expected to be built to environmentally responsible building standards.
SAFExSWAP
Legacy Ground Lease Conversion
Many building owners are living with legacy ground leases that lack the innovative, modernized structure of Safehold’s customer-friendly structure.
The SAFE x SWAP program enables Safehold to work with property owners to convert their outdated and problematic ground leases into a new and value enhancing Safehold ground lease.
SAFExSELL
Accretive Ground Lease at Exit
The SAFE x SELL program expands Safehold’s mission to unlock value at all stages of an asset’s life cycle by helping customers sell their properties more efficiently.
Much like how Safehold ground leases unlock value upon acquisition, recapitalization, and development of a property, they can also increase overall value when building owners sell their property – the combination of a Safehold ground lease and accompanying leasehold can generate more sale proceeds than selling the property outright.
CASE STUDIES
See the transformative power of a Safehold ground lease.
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