Safehold Closes Second Texas Affordable Housing Ground Lease for 336-Unit Austin Development
Safehold Inc. (NYSE: SAFE) has closed a ground lease for a 336-unit affordable housing development in northeast Austin, Texas, the company announced June 25. The transaction marks Safehold's second affordable housing ground lease in Texas and its second such deal with The NRP Group in Austin this year.
The development is structured as a 4% Low-Income Housing Tax Credit project and is expected to deliver 336 total units by 2028. Tax credit equity is being provided by Huntington National Bank, while Berkadia arranged both the construction and permanent financing for the project.
Ground Lease Structure Supports LIHTC Capital Stack
Safehold is serving as the ground lessor beneath the development, with The NRP Group acting as the vertical developer. The transaction represents Safehold's second transaction with NRP in Austin this year, both new construction 4% LIHTC developments.
"We're thrilled to expand our relationship with the team at NRP and our focus on the Affordable Housing market in Texas," said Steve Wylder, Safehold's Head of Investments. "We've established an innovative new ground lease structure for the Texas markets and are pleased our capital could play a role in moving this high-quality development forward."
Safehold formally established a dedicated Affordable Housing team in 2025 and has continued to grow its investment in the sector.
Northeast Austin Project Targets High-Growth Submarket
The development is located in northeast Austin, which Safehold described in its announcement as a "high-growth region with strong long-term fundamentals and demand for high-quality housing product." A specific street address for the project has not been disclosed.
NRP Group Expands Repeat Partnership with Safehold
The NRP Group, a vertically integrated developer, owner, builder, and manager of multifamily housing, has developed more than 62,000 apartment homes since its founding in 1994 and currently manages over 30,000 residential units. The firm has been recognized on the National Multifamily Housing Council's "Top 50" lists and has been named a top affordable housing developer by Affordable Housing Finance.
Safehold Accelerates Affordable Housing Platform
Safehold, which created the modern ground lease industry in 2017, operates as a real estate investment trust and holds a portfolio spanning multifamily, affordable housing, office, industrial, hospitality, student housing, life science, and mixed-use properties. The company established a dedicated affordable housing team in 2025 and has continued to expand its investment in the sector.
Additional information on the company's affordable housing platform is available at www.safeholdaffordablehousing.com.