Safehold Expands California Affordable Housing Portfolio
Two new ground leases in Simi Valley and San Ysidro will bring 570 affordable housing units to California. The projects, backed by Low-Income Housing Tax Credits, mark a deepening collaboration between Safehold and developer The Pacific Companies, aimed at addressing the state's persistent shortage of high-quality residential inventory.
The Pacific Companies, a prolific developer in the affordable housing sector, will manage the construction of both communities. These transactions represent a strategic push by Safehold to utilize ground lease structures as a means of bridging capital gaps, allowing projects to bypass traditional financing hurdles. Steve Wylder, head of investments at Safehold, noted that the firm has now finalized over 25 similar leases across California, citing the state's significant unmet demand for subsidized housing.
Financial support for these developments arrives via tax credit equity provided by U.S. Bank and Wells Fargo. By securing land beneath these future communities, Safehold intends to provide a long-term ownership model that stabilizes costs for developers while maintaining the viability of rent-restricted units. This latest expansion underscores a broader industry trend where institutional capital increasingly targets the intersection of tax-advantaged development and alternative real estate ownership structures.
Comments (0)
No comments yet. Be the first!