Safehold Signs $660M Ground Lease Agreements

NEW YORK CITY—Locally based Safehold Inc. has closed on two previously revealed Safehold ground leases underlying office buildings in New York and Austin, TX totaling approximately $140 million, bringing the aggregate portfolio to $1.3 billion. In addition, the company revealed that it recently signed contracts for another two ground leases totaling nearly $660 million.

The largest of these relate to the acquisition of the existing ground lease at 425 Park Ave. in New York City, the firm says, for approximately $620 million. In connection with this transaction, the company has entered into a letter of intent with a sovereign wealth fund to form a joint venture to complete the acquisition. Safehold would own 55% of the venture and act as its manager. The other deal relates to a student housing property in the Phoenix MSA.

Safehold expects to close these transactions in the third or fourth quarter; however, each closing is subject to customary closing conditions and there can be no assurance that the transactions will occur within the expected timeframe or at all. The 425 Park Ave. closing is not conditioned on completing the joint venture.