Ground lease REIT Safehold Inc. has closed on a $45-million ground lease for the development of an affordable housing community in the Soquel area of Santa Cruz. The project will be developed by The Pacific Companies, a prolific development firm and repeat Safehold customer.
“This is a high-quality, large-scale community in a high-cost coastal submarket with significant unmet demand for affordable housing,” said Steve Wylder, Safehold’s head of investments. “We’re excited to expand our relationship with The Pacific Companies and are pleased our ground lease capital could play a role in helping to deliver this project.”
The Low-Income Housing Tax Credit development will provide a total of 256 units upon delivery in 2028. Wells Fargo and Citi Community Capital provided both construction financing and tax credit equity, with Citi providing permanent financing for the project. The project represents Safehold’s second recent affordable housing ground lease in the Santa Cruz area.
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