November 16, 2018
Safety, Income & Growth Inc. (SAFE) originated a new $150-million ground lease, the largest single asset lease in its portfolio, on a trophy office building located at 1111 Pennsylvania Ave. in Washington, DC. SAFE’s customer utilized the ground lease to help capitalize the acquisition of the property.
The property is a Class A, 14-story office building centrally-located directly between the White House and the Capitol Building, and two blocks from three metro stations. The building is 100% occupied by Morgan, Lewis & Bockius.
SAFE’s Jay Sugarman says, “We’re pleased to see that our ground lease product is starting to gain attraction in the Washington D.C. market, where this year we’ve closed five deals for nearly $270 million. This deal demonstrates that SAFE can deliver its value-enhancing product to its customers at any scale.”
The leasehold was purchased by a venture with majority ownership from PRP, LLC and leasehold financing from a third-party global institutional lender.
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