Press Release Details

Safety, Income & Growth Completes Five New Ground Leases for Over $100 Million

Aug 27, 2018

NEW YORK--(BUSINESS WIRE)-- Safety, Income & Growth Inc. (NYSE: SAFE), the leading company focused on ground leases, announced that over the past month it has completed five new ground lease investments with institutional partners and leasehold lenders for $105 million of committed capital in three major metro areas across three property types. SAFE’s portfolio consists of more than $700 million of ground leases.

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Jefferson Building (Photo: Business Wire)

Jefferson Building (Photo: Business Wire)

“We launched Safety, Income & Growth with the clear vision to re-engineer the outdated ground lease structure and materially improve the traditional real estate ownership model. To accomplish this, we created a business predicated on offering clients a new and efficient way to access low-cost capital to increase their returns,” Chairman and Chief Executive Officer Jay Sugarman explained. “These recent deals continue our growing momentum and we look forward to making further progress this year in reaching our $1 billion portfolio goal.”

This group of transactions reflect the robust versatility of SAFE’s platform, including a ground lease structured to provide acquisition capital for an existing building and a ground lease to provide capital for development. As a result of these investments, the Company has enhanced its geographic diversity with its first deal in Phoenix and increased its presence in Washington, D.C. and San Diego.

Four investments were Company originated SAFE Ground Leases™:

  • Jefferson Building (Washington, D.C.): 73,000 sq. ft., eight-story office building located less than a mile from the White House in the Golden Triangle submarket, with close proximity to four Metrorail stations, numerous hotels, shops, and attractions.

  • The Madison (Phoenix, AZ): 177,000 sq. ft. Class A office property in the Camelback Corridor with quick access to 51 Freeway. The property has recently undergone a major renovation with upgrades to the lobbies, corridors, and exterior.
  • Balboa Executive Center (San Diego, CA): 121,000 sq. ft. Class A office building near the I-15 freeway. The property has recently undergone significant renovations to its lobby, corridors, landscaping and fitness center.
  • Southwest Waterfront (Washington, D.C.): 300+-unit, to-be-built mid-rise multifamily property in Washington D.C.’s Southwest submarket. SAFE executed a forward commitment to purchase the ground lease and fund additional proceeds to complete construction.

One investment was an acquisition of an existing ground lease:

  • Hyatt Centric (Washington, D.C. Metro Area): Existing ground lease on a 318-key, 16-story Hyatt branded hotel. The property is located across the street from the Rosslyn Metrorail station, with access to three different metro lines.

Safety, Income & Growth Inc. (NYSE: SAFE) is the first publicly traded company that focuses on acquiring, owning, managing and capitalizing ground leases. The Company seeks to provide safe, growing income and capital appreciation to shareholders by building a diversified portfolio of high quality ground leases. The Company, which is taxed as a real estate investment trust (REIT), is managed by its largest shareholder, iStar Inc. Additional information on SAFE is available on its website at www.safetyincomegrowth.com.

Safety, Income & Growth Inc.
Tim Doherty, 212-930-9433
Executive Vice President
Head of Ground Lease Investments
tdoherty@istar.com
or
Investor Relations:
Jason Fooks, 212-930-9400
Vice President
Investor Relations & Marketing
investors@safetyincomegrowth.com

Source: Safety, Income & Growth Inc.