NEW YORK--(BUSINESS WIRE)--
Safety, Income & Growth Inc. (NYSE:SAFE), the leading company focused on
ground leases, announced it has originated two new ground leases
totaling $50 million with The Dilweg Companies.
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Regency Lakeview (Photo: Business Wire)
Dilweg utilized a SAFE Ground Lease™ to successfully recapitalize
Regency Lakeview, a two-building office campus comprising 376k square
feet on 27 acres in Cary, NC. The property is in the center of the
vibrant “Research Triangle” between Raleigh, Durham, and Chapel Hill.
Regency Lakeview has convenient access to US-64 offering a short drive
to Raleigh-Durham International Airport and downtown Raleigh. The campus
is currently undergoing a nearly $6 million renovation to further
enhance the space.
In addition, SAFE’s custom-tailored ground lease facilitated Dilweg’s
acquisition of Pershing Point, a 7-story, 410k square foot office
building on Peachtree Street in Midtown Atlanta. The property is
well-located in a top 10 MSA and has excellent access to I-75, I-85, and
GA-400 via the Peachtree Street Connector. Dilweg plans to invest
approximately $19 million in capital and tenant improvements to
reposition the asset as creative office space.
The SAFE Ground Lease™ provided low-cost, long-duration solutions that
enabled Dilweg to unlock value and achieve better returns at both
properties.
“These transactions show how a well-structured, modern SAFE Ground
Lease™ can be employed to create value for customers at acquisition and
recapitalization. The low-cost, flexible structure is immediately
accretive, particularly when compared to alternative financing options,”
said Tim Doherty, Head of Ground Lease Investments. “We are building
momentum as the marketplace is realizing how our brand of ground leases
offers an innovative way for our clients to maximize their returns.”
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.
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Source: Safety, Income & Growth Inc.