August 6, 2019
Ground-lease REIT Safehold Inc. said Monday it had signed a contract to acquire the existing ground lease at 425 Park Ave. for approximately $620 million. In connection with the 425 Park transaction, Safehold 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 company said closing the 425 Park deal wasn’t contingent on completing the JV.
Additionally, Safehold said that it had closed on two previously announced ground leases underlying office buildings in New York and Austin, TX totaling approximately $140 million, bringing the aggregate portfolio to $1.3 billion. Founded as Safety, Income and Growth, Safehold is managed by iStar Inc., its largest shareholder with 65% ownership.
For comments, questions or concerns, please contact Paul Bubny