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Gateway Trophy Office 2018 Annual Report

1111 Pennsylvania Ave  //  WASHINGTON, DC

In 2018, Safehold originated a new $150 million ground lease on a trophy office building located on Pennsylvania Avenue in Washington D.C.

Needing a better and more efficient capital solution, our institutional customer utilized a Safehold ground lease to help acquire a Class-A 14-story office building centrally-located directly between the White House and the Capitol Building. Relative to alternative fee simple financing options, Safehold’s ground lease capital solution helped create a competitive advantage and enabled our customer to win this coveted asset.

With a core location in a gateway market, the transaction signaled that Safehold can deliver its value-enhancing product to customers on the highest quality properties around the country.

Multifamily Development 2018 Annual Report


A 300-unit, to-be-built mid-rise multifamily property in Washington, D.C.’s Southwest Waterfront submarket. Safehold executed a forward commitment to purchase the ground lease and fund additional proceeds to complete construction.

A repeat customer utilized a $30 million Safehold™ ground lease for a new multifamily construction project, less than a mile from a previously executed Safehold™ ground lease. Seeking more capital at a better rate and the flexibility of funding throughout the development life cycle, our customer was able to benefit from a structure that was favorable for both the equity and leasehold lender.

The deal demonstrated the versatility of Safehold’s ground lease product as a mechanism to provide capital for development and the ability to custom-tailor our Safehold structure to meet the specific needs of the developer.

Repeat Customers 2018 Annual Report


A private real estate investor in value-add assets across the U.S., Admiral Capital Group has utilized Safehold™ ground leases in five separate transactions, two in 2018 and three in 2019.

Seeking to generate better cash-on-cash returns, Admiral Capital Group followed up two previous deals with another three transactions. The investments were made out of Admiral Capital Group's newly launched core-plus fund. With a more efficient capital structure, enhanced returns and minimized risk, repeat customers like Admiral Capital Group are gravitating towards the capital advantage Safehold provides in a competitive marketplace.

To date, Admiral Capital Group has utilized a Safehold™ ground lease to close the acquisitions of well-located office properties in the Dallas, Phoenix, Philadelphia and San Diego MSAs.

New Markets 2018 Annual Report


A new ground lease on a recently-constructed 275-unit Class A multifamily building in the Music Row submarket of Nashville.

Seeking low cost, low risk capital to help fund the acquisition of an existing mid-rise multifamily, The Dinerstein Companies utilized a Safehold™ ground lease just months after successfully completing a transaction in Orlando, FL. The Safehold™ ground lease enabled The Dinerstein Companies to achieve value-add returns on a core asset with less equity required.

As the first Safehold ground lease completed in the Nashville market and the second completed with The Dinerstein Companies, Safehold added another repeat customer while expanding into an attractive new market with significant long-term growth prospects.