Safehold Closes Ground Lease With The NRP Group for 336-Unit Affordable Housing Development in San Antonio
Safehold Inc. (NYSE: SAFE) has closed a ground lease supporting the development of a 336-unit affordable housing community in San Antonio, Texas, the company announced Sept. 8. The Low-Income Housing Tax Credit project is being developed by The NRP Group and is expected to deliver in 2028, with tax credit equity provided by Wells Fargo.
The development, known as Lakeside Lofts, is located at 5606 U.S. Hwy. 87 East on San Antonio's southeast side, a corridor the company described as a growing residential core driven by population and job growth. The project carries an estimated total development cost of $91.6 million and sits on a 19-acre parcel.
Safehold Expands Texas Affordable Housing Footprint
The transaction represents Safehold's first affordable housing ground lease in San Antonio and its third in Texas in 2026. The company has now closed 28 affordable housing ground leases nationwide since launching its dedicated affordable housing platform.
"This is a high-quality development in a growing San Antonio market, and we're pleased to partner again with The NRP Group while continuing to expand Safehold's Affordable Housing platform and presence across Texas," said Steve Wylder, Safehold's Head of Investments.
Safehold's affordable housing strategy centers on new construction LIHTC developments, where the company says its long-term, low-cost ground lease structure helps bridge capital gaps and advance projects that might otherwise face financing challenges. The NRP Group is a repeat Safehold customer.
The NRP Group and Wells Fargo
The NRP Group, founded in 1994, has developed more than 68,000 apartment homes and currently manages more than 33,000 residential units. The firm has been consistently ranked among the largest multifamily developers and builders in the United States and has received recognition as a top affordable housing developer from multiple industry organizations.
Wells Fargo is providing tax credit equity for the San Antonio development.
Safehold's Broader Momentum in Affordable Housing
The San Antonio closing comes as Safehold has been accelerating its affordable housing activity. In the second quarter of 2026, the company reported $114.6 million in revenue and $30.2 million in net income attributable to common shareholders, with earnings per share of $0.42. During that quarter, Safehold closed $150 million in new ground lease originations, all of which fell within its affordable housing sub-sector.
The company's total portfolio value reached $7.3 billion as of the second quarter, supported by 172 ground lease assets covering approximately 39.4 million square feet of real estate. Estimated unrealized capital appreciation stood at $9.8 billion.
Earlier in 2026, Safehold announced another Texas affordable housing ground lease in Austin and closed two affordable housing ground leases in California totaling 570 units.
San Antonio Market Context
The Lakeside Lofts development enters a San Antonio multifamily market that has been navigating elevated supply but is showing signs of rebalancing. Cap rates in the market averaged 6.0% in the first quarter of 2026, up from 5.5% in 2024. Projected unit deliveries for full-year 2026 stand at approximately 2,600, a decline of 63% from 2025 and the slowest delivery pace since 2011.
Average asking rents in San Antonio tracked at $1,232 through March 2026, with 517 units delivered in the first quarter and roughly 11,955 units still under construction, reflecting a pipeline that remains active even as new starts slow.
Safehold was founded in 2017 and is structured as a real estate investment trust. Additional information on its affordable housing platform is available at safeholdaffordablehousing.com.
Sources
More Development
Wood Partners Breaks Ground on 237-Unit Alta Thoreau Multifamily Community in Concord, Massachusetts
Alchemy-ABR Investment Partners, Azur Holdings Management and Carlyle Near Completion on 45-Unit Luxury Tower at 288 East 88th Street
