#United States #Los Angeles #affordable housing #Safehold Inc.

Safehold Inc. Expands Affordable Housing Initiatives in Los Angeles

Safehold Inc., a leader in the ground lease industry, has taken a giant leap forward in addressing the affordable housing crisis in Los Angeles. The company, listed on the NYSE under the ticker SAFE, has successfully completed ground leases for six significant developments aimed at creating affordable housing communities in the area.

The selected projects are backed by Low-Income Housing Tax Credits (LIHTC), incentivizing the development of affordable housing by providing tax benefits to developers. These projects will be spearheaded by HVN Development, a relatively new player in the market with a keen focus on delivering well-designed, efficient housing solutions in densely populated regions of Southern California.

A New Partnership

Steve Wylder, Safehold's Head of Investments, expressed enthusiasm for collaborating with HVN Development. "We are excited to establish a relationship with the team at HVN and continue expanding our presence in the affordable housing sector. Our low-cost, 99-year ground lease capital is essential for moving these LIHTC projects forward," he noted.

Ethan Torbati, Vice President at Safehold, added, "These locations are high-quality infill sites with significant unmet demand for affordable products. We are pleased our capital could contribute to delivering these much-needed communities."

The developments are expected to culminate in over 400 housing units by 2027, positioned in West and Central Los Angeles, as well as the San Fernando Valley. These regions have been identified as having substantial demand for affordable housing solutions, making Safehold's investment not just a business venture but a societal contribution as well.

About Safehold’s Approach

Founded in 2017, Safehold has revolutionized the landscape of real estate ownership by offering innovative ground lease solutions that allow property owners to extract value from the land under their buildings. This approach not only aids in financing new developments but also provides a pathway for affordable housing solutions in high-demand areas.

As a company structured as a Real Estate Investment Trust (REIT), Safehold is dedicated to delivering both consistent income and long-term value to its investors. The company has established a reputation for working with owners of various property types, including multifamily, office, industrial, and student housing, to maximize accessibility and profitability.

Safehold's commitment to fostering affordable living conditions is indicative of a broader trend where corporate entities are beginning to recognize their role in social responsibility, particularly in real estate. This initiative in Los Angeles serves both as a critical response to the ongoing housing crisis and a model for future development strategies by demonstrating how innovative financing and commitment to community can go hand in hand.

Future Prospects

The successful execution of these projects will set a precedent for similar developments across urban landscapes nationwide. With the increasing pressure on affordable housing and rising living costs, such initiatives become crucial in maintaining diverse and vibrant community ecosystems.

For further details on Safehold's plans and initiatives in affordable housing, interested parties can visit Safehold Affordable Housing.

With these impactful developments, Safehold Inc. and HVN Development are paving the way for a more sustainable and inclusive urban future.