Home Featured Safehold Closes $195M Waikiki Ground Lease and Launches SAFE x SWAP Program

Safehold Closes $195M Waikiki Ground Lease and Launches SAFE x SWAP Program


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Safehold Inc. has closed on the previously revealed purchase of the existing ground lease under the Alohilani Resort in Waikiki Beach for $195 million.

Concurrent with the closing of the acquisition, Safehold completed an agreement with the owner of the hotel leasehold to convert the existing ground lease into a new Safehold ground lease as part of its SAFE x SWAP program. The program seeks to help real estate investors with older, inefficient ground leases upgrade into Safeholds’ modern, value-enhancing solution.

“Our purchase and rework of an outdated ground lease demonstrates another innovative channel of growth at Safehold,” said Jay Sugarman, Chairman and Chief Executive Officer. “By stripping away the detrimental provisions in archaic ground leases and swapping them out for the modern, more efficient Safehold™ structure, we can unlock significant value for our customers.”

The Waikiki market has historically been one of the strongest hotel markets in the nation and the Alohilani represents one of the largest hotels in the market. The leasehold on the hotel was purchased for $515 million in 2017.

Safehold Inc. is revolutionizing real estate ownership by providing a new and better way for owners to unlock the value of the land beneath their buildings. Through its modern ground lease capital solution, Safehold helps owners of high quality multifamily, office, industrial, hospitality and mixed-use properties in major markets throughout the United States generate higher returns with less risk.