Safehold Inc. has closed a ground lease for the development of an Affordable Housing community in Austin, Texas. The Low-Income Housing Tax Credit (LIHTC) development will provide 336 total units upon delivery in 2028. The project will be developed by The NRP Group, one of the most active developers of Affordable Housing in the United States and a repeat Safehold customer.

Project Details

The development is structured as a LIHTC project, aimed at increasing the availability of affordable housing options in the region. The ground lease model allows for the separation of land ownership from building ownership, potentially reducing capital costs for the developer. This transaction represents Safehold's second transaction with NRP in Austin this year, both new construction 4% LIHTC developments.

The project is located in northeast Austin, a high-growth region with strong long-term fundamentals and demand for high-quality housing product. Safehold established a dedicated Affordable Housing team in 2025 and has continued to expand its investment into the sector.

Safehold Inc. has closed a $45 million ground lease for the development of an affordable housing community in the Soquel area of Santa Cruz, California. The transaction addresses significant unmet demand for high-quality housing in the high-cost coastal submarket. The project will be developed by The Pacific Companies, a repeat customer of Safehold.

Project Details

The Low-Income Housing Tax Credit development is scheduled for delivery in 2028. It will provide a total of 256 units upon completion. This marks Safehold's second recent affordable housing ground lease in the Santa Cruz area, reflecting the firm's broader strategy to expand its focus on the affordable sector.

Financing Structure

Wells Fargo and Citi Community Capital provided both construction financing and tax credit equity for the project. Citi also provided permanent financing. The capital structure aims to fill gaps created by elevated interest rates and high construction costs.

Strategic Expansion

Steve Wylder, Safehold's Head of Investments, emphasized the quality and scale of the community. He stated that the firm is positioning its capital to help move projects forward despite challenging market conditions. Safehold continues to leverage its ground lease model to support the delivery of affordable housing.