NEW YORK--(BUSINESS WIRE)--
Safety, Income & Growth Inc. (NYSE:SAFE), the leading company focused on
ground leases, announced it has originated a new $150 million ground
lease, the largest single asset lease in its portfolio, on a trophy
office building located on Pennsylvania Avenue in Washington, D.C.
SAFE’s customer utilized the ground lease to help capitalize the
acquisition of the property.
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Pennsylvania Avenue, Washington, D.C. (Photo: Business Wire)
The property is a Class-A 14-story office building centrally-located
directly between the White House and the Capitol Building and two blocks
from three metro stations which provide access to all six of D.C.’s
metro lines. The building is 100% occupied by a global law firm on a
long-term lease.
“We’re pleased to see that our ground lease product is starting to gain
attraction in the Washington D.C. market, where this year we’ve closed
five deals for nearly $270 million,” said Jay Sugarman, Chairman and
Chief Executive Officer. “This deal demonstrates that SAFE can deliver
its value-enhancing product to its customers at any scale.”
This SAFE Ground Lease™ features fixed annual rent escalations
over 99 years with CPI-based adjustments. The leasehold was purchased by
a venture with majority ownership from PRP, LLC and leasehold financing
from a third-party global institutional lender.
Safety, Income & Growth Inc. (NYSE:SAFE) is the first publicly traded
company focused on ground leases. The Company seeks to provide real
estate owners with better, lower cost capital through its modern ground
lease structure, while delivering safe, growing income and long-term
capital appreciation to its shareholders. The Company targets major
markets throughout the United States, helping owners of high quality
multifamily, office, industrial, hospitality and mixed use properties
ranging from $25 million to $1 billion generate higher returns with less
risk. 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.
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Clients:
Tim Doherty
Executive Vice President
Head
of Ground Lease Investments
T: 212-930-9433
E:
tdoherty@istar.com
Investor Relations:
Jason Fooks
Vice President
Investor
Relations & Marketing
T: 212-930-9400
E: investors@safetyincomegrowth.com
Source: Safety, Income & Growth Inc.