Safehold Expands Affordable Housing Ground Lease Portfolio
Key Takeaway: Safehold says its 99-year ground lease model is filling gaps in affordable housing finance, pointing to 28 deals covering more than 4,800 units in California and Texas.
Safehold Inc. has expanded its affordable housing push through long-term ground leases, the REIT said in a Commercial Observer Partner Insights piece published 20 October 2026 and labelled ‘Presented by: Safehold’. The piece frames the 99-year ground lease as low-cost capital for developments relying on the Low-Income Housing Tax Credit programme.
In a typical 4 per cent tax credit deal, Safehold provides the ground lease and funds the land cost plus additional proceeds towards project costs, with rent growing at a fixed annual rate and no fair-market resets, Commercial Observer reported.
Regional developments and financing
In San Antonio, Texas, a 336-unit development is scheduled for delivery in 2028 with tax credit equity from Wells Fargo, developed by The NRP Group, Safehold said in a September release; the company described it as its first affordable housing development in San Antonio and its third across Texas this year.
Earlier California deals include 781 affordable units in San Jose and Concord, where ground leases closed in July 2024, and the 200-unit 80 Saratoga community in Santa Clara from 2023, all built with The Pacific Companies, according to Nareit. Bank of America served as LIHTC lender and Citibank as permanent lender on the Santa Clara project, Nareit reported.
“A basic tenet of our structure is that it’s a 99-year lease, with fixed rent increases and no fair market value resets or percentage rent provisions.” Steve Wylder, Safehold’s head of investments, told Nareit.
A growing portfolio
Safehold’s ground lease portfolio stands at $6.5 billion across more than 145 assets, up from $350 million and 12 assets at its IPO about seven years earlier, with multifamily representing nearly half, Nareit reported.
“What Safehold has done for us is provide capital at a lower overall cost of capital than we could get from traditional financing mechanisms.” Bjorn Doskeland, executive vice president of finance at The Pacific Companies, told Nareit.
Key Story Metrics
| Figure | Reported Status |
|---|---|
| Ground leases completed | 28 (Safehold) |
| Units covered | Over 4,800 (Safehold) |
| Lease term | 99 years; fixed annual increases; no fair-market resets |
| Target deals | 4% Low-Income Housing Tax Credit |
| San Antonio project | 336 units; delivery due 2028 |
| San Jose and Concord | 781 units; leases closed July 2024 |
| Portfolio | $6.5 billion; 145+ assets (Nareit) |
✓ Verified
Safehold’s ground lease structure uses a 99-year term with fixed annual rent increases and no fair-market value resets, aimed at 4% LIHTC deals (Commercial Observer; Nareit). Ground leases closed in July 2024 cover 781 affordable units in San Jose and Concord, California, built with The Pacific Companies, and the same developer built the 200-unit 80 Saratoga community in Santa Clara in 2023 (Nareit). Safehold’s portfolio totals $6.5 billion across more than 145 assets, up from $350 million and 12 assets at IPO, with multifamily nearly half (Nareit).
⚠ Still needs confirmation
The headline figures, 28 ground leases and over 4,800 units, come from Safehold itself via the sponsored Commercial Observer piece and have not been independently verified. The San Antonio development (336 units, delivery due 2028, The NRP Group, Wells Fargo equity) is reported only in Safehold’s own September release. The sponsored piece frames the 28 leases as covering California and Texas, while the September release describes them as supporting transactions throughout the United States.
- Commercial Observer (Partner Insights, presented by Safehold): Safehold Delivers Predictable, Low-Cost Capital to Move Affordable Housing Forward
- Commercial Observer (Greg Cornfield): Steve Wylder on Safehold’s affordable housing ground lease
- Safehold Inc. via PRNewswire: Safehold Closes Affordable Housing Ground Lease in San Antonio, Texas
- Nareit: Safehold Ground Lease Structure Helping to Meet Demand for Affordable Housing
Editor’s note: The anchor interview for this story was published as sponsored content presented by Safehold; company figures are attributed in the text and the 28-lease total has not been independently verified.
