NEW YORK--(BUSINESS WIRE)--
Safety, Income & Growth Inc. (NYSE: SAFE) and iStar Inc. (NYSE: STAR)
partnered to originate a new ground lease and first mortgage leasehold
loan on an 8-story office property adjacent to the George Washington
University campus in Washington, D.C. The building is scheduled to be
converted into a 153-unit multifamily building beginning in late 2019 by
experienced developer Insight Property Group. iStar provided the
leasehold acquisition loan and SAFE provided a newly created lease under
their unique “SAFE/STAR” one-stop capital program.
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515 22nd St. NW, Washington, D.C. (Photo: Business Wire)
“This was an excellent example of iStar and SAFE partnering to provide a
customized, flexible capital solution with a lower cost and reduced
maturity risk in comparison to other alternatives,” said Jay Sugarman,
Chief Executive Officer of iStar and SAFE. “The investment highlights
the significant growth we have witnessed in Washington, D.C. as property
owners begin to understand how a SAFE Ground Lease™ can be more
efficient, unlock value and create a competitive advantage."
This marks SAFE’s sixth ground lease in Washington, D.C. over the past
year, providing approximately $300 million in capital for customers to
acquire, recapitalize, develop, and redevelop high quality office,
multifamily and hospitality assets in the city. The ground leasefeatures
fixed annual base rent escalations and a 99-year lease term with CPI
lookbacks every ten years.
The existing 8-story office building will be fully renovated into a
153-unit multifamily property with a fitness center, lounge, and 3 roof
decks. The property is a few blocks from the Foggy Bottom – GWU metro
stop with access to three metro lines. The building is located within
walking distance to nearby shops, restaurants and tourist attractions
including the White House and the National Mall.
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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Client Contact:
Tim Doherty
Executive Vice
President
Head of Ground Lease Investments
T:
212-930-9433
E: tdoherty@istar.com
Investor
Relations Contact:
Jason Fooks
Vice President
Investor
Relations & Marketing
T: 212-930-9400
E:
investors@safetyincomegrowth.com
Source: Safety, Income & Growth Inc.