Safehold Secures Ground Lease for Affordable Housing in Sacramento Area

Safehold Inc., a trailblazer in the modern ground lease sector, has recently advanced its commitment to affordable housing by closing a significant ground lease in the Roseville neighborhood of Sacramento, California. This strategic move allows for the development of The Crawford, a community aimed at providing affordable living spaces for residents in need.

The development will encompass a total of 265 units, designed to support low-income families through the low-income tax credit framework. Notably, this project will be undertaken by USA Properties Fund, Inc., a seasoned developer with a solid reputation in the Sacramento area and a previous collaborator with Safehold. This partnership marks another step in Safehold's initiative to address the pressing demand for affordable housing in rapidly growing markets.

Steve Wylder, Safehold's Head of Investments, expressed enthusiasm about fostering an ongoing relationship with USA Properties. He emphasized the importance of addressing housing needs in Roseville, highlighting the area’s rapid growth and the substantial demand for affordable options. Wylder stated, "Roseville is a high-growth market with strong demographics and a real need for affordable housing – we're excited to be a part of this project."

In 2024 alone, Safehold executed six transactions focused on affordable housing in California, solidifying its dedication to this vital sector. The company has leveraged its unique ground lease model for such developments to provide innovative financing solutions, enabling developers to lower capital costs while advancing essential housing projects.

Ethan Torbati, Vice President at Safehold, added, “We are increasingly focused on the affordable sector and are positioning our capital as a tool to help developers bridge capital structure gaps, lower their cost of capital, and move much-needed affordable housing projects forward.” This strategic emphasis on affordable housing showcases Safehold’s foresight in addressing societal needs while generating profitable returns on investment.

As part of its broader mission, Safehold continues to revolutionize real estate ownership by helping property owners tap into the economic potential of their land holdings through modern ground leases. Established as a groundbreaking industry leader in 2017, Safehold’s approach empowers owners of multifamily, office, and mixed-use properties alike, allowing them to maximize returns with reduced risk.

With a business model centered around being taxed as a real estate investment trust (REIT), Safehold is committed to delivering reliable income and long-term growth for its shareholders. The company's vision includes facilitating the development of profitable, socially beneficial real estate projects that meet contemporary demands.

Safehold Inc. aims to remain at the forefront of the real estate landscape, fostering partnerships that yield meaningful community impact and enhancing its reputation as a pivotal player in the affordable housing market. For more information or to stay updated on their initiatives, visit Safehold's official website.