Reinventing Ground Leases for Modern Capital Structures

SAFE is introducing a new brand of ground leases as a capitalization option to help leaseholders maintain liquidity and enhance returns on equity. Our ground leases are structured to work seamlessly with real estate lenders in modern capital structures and are generally categorized by three origination methods.

Create New Ground Leases

We create ground leases upon clients’ acquisition, recapitalization, or partner buyout.

Case Study

Provide Ground Lease Pre-stabilization

We create ground leases at commencement of construction based on improved land value.

Case Study

Acquire Existing Ground Leases

We purchase existing ground leases in whole or in part depending on our seller’s needs.

Case Study

Our Sweet Spot: The SAFE Ground Lease™

  • Transaction Size: $15,000,000 - $500,000,000
  • Property Types: Office, Multi-Family, Hospitality, Medical Office, Retail, Industrial, Student Housing
  • Cap Rate Range: 3.5% - 5.0% +
  • Ground Lease to Property Value: 25% - 40%
  • Coverage Range: 3.5x – 5.0x +
  • Geography: Top 25 Markets Nationwide
  • Closing: Unique “Quick Close” capability – deposit upfront, 10 days due diligence and 5 days close

More Efficient Way To Access Capital At A Lower Cost

Property owners generate enhanced returns by selling the low return land component via a ground lease and reducing the amount of equity capital required.

Eliminate Interest Rate And Refinancing Risk On A Substantial Portion Of The Capital Stack

Ground leases provide a low, predictable cost of funds over a long term.

A SAFE Foundation
For Growth

SAFE ground leases are structured to work with today’s modern commercial real estate industry by ensuring the building remains unrestricted and easy for our customers to finance and sell. Our ground leases comprise a relatively small portion of the capital structure to ensure full liquidity.

Ground Lease Structure

Leasehold Mortgage
Ground Lease

The Power of a SAFE Ground Lease™

Let’s Build The Future Together

SAFE’s custom-tailored ground leases are a better way for real estate owners and developers to capitalize their projects. A modern, SAFE Ground Lease™ can be part of the capital structure of almost any property within the $7 trillion+ commercial real estate industry. We are the first movers in the space with a goal of making ground leases mainstream in the commercial real estate market.

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Selected Transaction

Acquire Existing Ground Lease

  • Ground Lease Transaction Size: $140 million
  • Property Type: Multifamily 
  • Ground Lease To Property Value: ~20%
  • Property Cash Flow/Ground Rent: >6.0x
  • Geography: Los Angeles, CA – adjacent to Hollywood / Vine metro station
  • Client Need: High net worth family sought quick close with certainty on two contiguous ground leases
  • SAFE Solution: Sizable deposit, 10 day due diligence and 10 day close

Selected Transaction

Manufacture Upon Acquisition

  • Ground Lease Transaction Size: $39 million
  • Property Type: Multifamily
  • Ground Lease To Property Value: ~39%
  • Property Cash Flow/Ground Rent: >3.1x
  • Geography: Washington, D.C.
  • Client Need: Access to low-cost capital via ground lease acquisition & leasehold financing
  • SAFE Solution: Provide client with highly efficient, low cost, long duration capital to acquire the property via a custom-designed SAFE Ground Lease™. In addition, a third-party institutional lender provided long-term fixed-rate leasehold financing at closing.

Selected Transaction

Provide Ground Lease Pre-stabilization

  • Ground Lease Transaction Size: $16 million
  • Property Type: Medical Office
  • Ground Lease To Property Value: ~30%
  • Property Cash Flow/Ground Rent: Greater than 3.5x
  • Geography: Atlanta MSA
  • Client Need: Access low cost capital to reduce owner equity commitment and increase stabilized yield
  • SAFE Solution: Commit to long term ground lease while owner negotiated low cost bank loan on leasehold, eliminating need for mezzanine or third party equity capital and enhancing client’s equity returns