A better way to own commercial real estate

The best businesses make big markets more efficient and deliver a better customer experience. We’ve used our deep expertise and history of innovation in real estate finance and sale-leaseback to create a fundamentally better capital solution for real estate owners.

GROUND LEASES
For owners, developers and operators

Disrupting the commercial real estate industry with a more efficient solution

Safehold™ ground leases offer real estate owners, developers and operators a modern, better way to unlock the value of the land beneath their buildings, solving the industry’s problem of poorly written, value-destroying ground leases. iStar is Safehold’s founder, manager and largest shareholder.

More capital efficient

Separating the land from the building enables property owners to generate significantly higher returns on their equity.

More cost efficient

Property owners avoid a lifetime of transaction and friction costs associated with the land component.

Significant risk reduction

Safehold™ ground leases eliminate debt maturity risk on a large portion of the capital structure.

HIGHER RETURNS COST EFFICIENT LESS RISK
BETTER CAPITAL
REVO LUTIO NARY

A revolutionary, customer-centric approach to ground leases

Safehold is the first and only nationally-scaled platform focused on making ground leases value-enhancing, combining a bespoke customer experience with a flexible structure that meets the individual needs of property owners. Repeat customers are increasingly turning to Safehold to win competitive bids and efficiently fund new developments and recapitalizations.

for Shareholders

A unique investment opportunity combining quality, value and growth

Superior principal safety

Ground leases occupy a senior position in the capital structure – typically the safest 35%-40% of a property’s combined value (CPV) – equivalent to AAA CMBS-like risk.

Illustrative example of a 99-year Safehold™ ground lease with 2.0% annual rent growth and a year one cash rate of 3.50%. Massachusetts Institute of Technology 2116 unsecured AAA-rated bonds trade at a yield to maturity of 3.42% as of 3/23/20.

Attractive, long-term contractual cash flows

Contractual rent increases create long-term compounding cash flows that generate superior risk adjusted returns versus similar-risk fixed income securities.

$7T

Significant market opportunity

Real estate is one of the largest capital markets with an estimated $7 trillion of institutional-quality assets in the top 30 U.S. markets. Safehold™ ground leases can provide an attractive capital solution in each of these markets and become part of the capital structure across almost all property types.

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