Safehold Expanded Affordable Housing Ground Lease Platform
The firm added new ground lease options for developers to help bridge financing gaps in affordable housing projects.
Updated on Oct. 5, 2026 in Apartments
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Safehold launched a dedicated platform in 2025 to provide long-term ground leases for affordable housing developments. The company has since expanded its reach, closing over 25 LIHTC-related deals in California and its first three transactions in Texas in 2026.
Why it matters
Rising interest rates and construction costs have created significant financing gaps for affordable housing developers. By using ground leases, these projects can access capital at a premium to land value, often at a lower cost than traditional debt options.
Safehold has funded over $7 billion in ground lease capital across 172 total deals. The model provides 99-year terms that can increase proceeds by 10 to 20 percent for 4 percent LIHTC projects compared to conventional financing.
The players
Safehold
A real estate investment trust that specializes in ground leases and has funded $7 billion in capital to support property development.
Steve Wylder
An executive at Safehold who has discussed the company's expansion into new affordable housing markets.
The details
The platform functions by separating the ownership of the land from the building, with Safehold providing a 99-year ground lease to the developer. These agreements feature fixed rent increases and remove the uncertainty of fair-market value resets found in some other models. This structure allows developers to reduce their initial debt load, helping projects that might otherwise be stalled by high capital costs.
Timeline
2025: Safehold launched its dedicated affordable housing platform.
2026: The company closed its first three LIHTC transactions in Texas.
Late September 2026: Commercial Observer interviewed Steve Wylder regarding these developments.
The Home Front
This platform operates within the financing constraints of the Low-Income Housing Tax Credit (LIHTC) program. It serves as a financial tool to help projects navigate the current high-cost environment for multi-family residential development.
While ground leases are a tool for developers, they often impact the long-term affordability and management structure of apartment complexes. Residents in properties using this model should check their lease documentation or property disclosures to see if a ground lease is in place, as it influences ownership and rent structures.
The takeaway
The ground lease model is becoming a standard tool for developers looking to manage rising interest rates in the affordable housing sector. Keep an eye on local development news for new projects utilizing these financing structures to see if they impact your local housing supply.
Further reading
Learn more about the current market for Apartments to understand how financing shifts affect new construction.
Source note: This article includes information reported by Commercial Observer.
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