News about Safehold

Safehold, which created the modern ground lease, is applying the structure to affordable housing. In a typical 4 percent tax credit deal, it provides a 99-year ground lease and funds both the land cost and part of project costs. Rent rises at a fixed rate each year with no fair-market resets, and the lease rate sits well below conventional debt, helping drive more proceeds at a lower blended cost of capital. General counsel Yosefa Lunzer says the company explains the structure upfront and ensures the lease does not interfere with the ownership, financing or operation of the property.