Safety, Income & Growth & iStar Provide “SAFE/STAR” One-Stop Capital Solution for Multifamily Conversion in Washington, D...
January 24 2019 - 9:00AM
Business Wire
Safety, Income & Growth Inc. (NYSE: SAFE) and iStar Inc.
(NYSE: STAR) partnered to originate a new ground lease and first
mortgage leasehold loan on an 8-story office property adjacent to
the George Washington University campus in Washington, D.C. The
building is scheduled to be converted into a 153-unit multifamily
building beginning in late 2019 by experienced developer Insight
Property Group. iStar provided the leasehold acquisition loan and
SAFE provided a newly created lease under their unique “SAFE/STAR”
one-stop capital program.
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the full release here:
https://www.businesswire.com/news/home/20190124005158/en/
515 22nd St. NW, Washington, D.C. (Photo:
Business Wire)
“This was an excellent example of iStar and SAFE partnering to
provide a customized, flexible capital solution with a lower cost
and reduced maturity risk in comparison to other alternatives,”
said Jay Sugarman, Chief Executive Officer of iStar and SAFE. “The
investment highlights the significant growth we have witnessed in
Washington, D.C. as property owners begin to understand how a SAFE
Ground Lease™ can be more efficient, unlock value and create a
competitive advantage."
This marks SAFE’s sixth ground lease in Washington, D.C. over
the past year, providing approximately $300 million in capital for
customers to acquire, recapitalize, develop, and redevelop high
quality office, multifamily and hospitality assets in the city. The
ground lease features fixed annual base rent escalations and a
99-year lease term with CPI lookbacks every ten years.
The existing 8-story office building will be fully renovated
into a 153-unit multifamily property with a fitness center, lounge,
and 3 roof decks. The property is a few blocks from the Foggy
Bottom – GWU metro stop with access to three metro lines. The
building is located within walking distance to nearby shops,
restaurants and tourist attractions including the White House and
the National Mall.
Safety, Income & Growth Inc. (NYSE: SAFE) is the first
publicly traded company focused on ground leases. The Company seeks
to provide real estate owners with better, lower cost capital
through its modern ground lease structure, while delivering safe,
growing income and long-term capital appreciation to its
shareholders. The Company targets major markets throughout the
United States, helping owners of high quality multifamily, office,
industrial, hospitality and mixed use properties ranging from $25
million to $1 billion generate higher returns with less risk. The
Company, which is taxed as a real estate investment trust (REIT),
is managed by its largest shareholder, iStar Inc. Additional
information on SAFE is available on its website at
www.safetyincomegrowth.com.
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version on businesswire.com: https://www.businesswire.com/news/home/20190124005158/en/
Client Contact:Tim DohertyExecutive Vice
PresidentHead of Ground Lease InvestmentsT:
212-930-9433E:
tdoherty@istar.comInvestor Relations
Contact:Jason FooksVice PresidentInvestor
Relations & MarketingT:
212-930-9400E:investors@safetyincomegrowth.com
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