Safehold Closes Two Affordable Housing Ground Leases in California for 211-Unit Multifamily Development
Safehold Inc. (NYSE: SAFE) has closed ground leases for the development of two affordable housing communities in California, the company announced May 19. The projects, located in Santa Cruz and Santa Clarita, will be developed by CRP Affordable Housing & Community Development and are expected to deliver a combined 211 units by 2028.
The transactions mark CRP Affordable Housing & Community Development's first engagement with Safehold, which described the firm as a new customer. Citi Community Capital is providing both construction and permanent financing on the two projects.
Deal Structure and Financing
The developments are structured as Low-Income Housing Tax Credit projects, a federal program that incentivizes private investment in affordable rental housing. Under Safehold's ground lease model, the company holds the land interest while the developer — in this case, CRP Affordable Housing & Community Development — finances and constructs the vertical improvements.
"We're thrilled to establish a relationship with CRP and support the creation of high-quality residential communities in markets that need affordable housing," said Steve Wylder, Safehold's Head of Investments. "We've continued to expand our investment into and support of the Affordable Housing industry. We're pleased our ground lease capital was helpful in CRP's efforts to move these projects forward."
Project Locations and Market Context
Santa Cruz is a coastal community situated along Monterey Bay, while Santa Clarita is a fast-growing city in northern Los Angeles County.
The two projects are identified in Safehold's announcement imagery as "B Belt" and "Creekside," though the company did not disclose specific street addresses, individual unit counts per site, or total development costs for either property. The combined 211-unit figure represents the aggregate delivery across both communities.
Safehold's Affordable Housing Platform
The California closings are part of Safehold's broader push into the affordable housing sector, which the company has developed as a distinct platform alongside its work in market-rate multifamily, office, industrial, hospitality, student housing, life science, and mixed-use properties. Safehold has operated as a REIT since its founding of the modern ground lease industry in 2017.
Safehold did not disclose the financial terms of either ground lease, including ground rent, lease duration, or the size of its investment in the two transactions. The projects are expected to complete construction and deliver units in 2028. The company maintains a dedicated affordable housing platform with additional information available at its website.
About the Parties
Safehold Inc. is a publicly traded REIT that provides ground lease capital across a range of commercial real estate property types, including multifamily, affordable housing, office, industrial, hospitality, student housing, life science, and mixed-use properties. CRP Affordable Housing & Community Development is described by Safehold as an experienced affordable housing development firm. Citi Community Capital provided construction and permanent financing for both projects.