Safehold Expands Affordable Housing Footprint with Two California Ground Leases
Event summary
- Safehold closed two ground leases in June for affordable housing developments in California, totaling 570 units.
- The projects are located in Simi Valley (Ventura County) and San Ysidro (San Diego County).
- Both developments are being built by The Pacific Companies and supported by tax credit equity from U.S. Bank and Wells Fargo.
- Safehold has now closed over 25 ground leases on Low-Income Housing Tax Credit (LIHTC) developments in California.
The big picture
Safehold is deepening its focus on affordable housing, a sector with significant capital constraints and regulatory complexities. The company's ground lease model positions it as a niche financier, addressing gaps in traditional funding structures. With over 25 California deals closed, Safehold appears to be scaling its platform while competing against banks and specialized affordable housing lenders.
What we're watching
- Adoption Pace
- The pace at which ground leases gain traction among affordable housing developers and their capital providers.
- Capital Gap Filling
- Whether Safehold's model can consistently fill capital structure gaps to advance more projects.
- California Demand
- How Safehold will leverage California's unmet demand for affordable housing in future deal flow.
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