Safehold Inc. has entered into a definitive purchase agreement to acquire the existing ground lease under the Alohilani Resort in Waikiki Beach for $195 million, representing its first investment in Hawaii.
Separately, the Company has also finalized a 55/45 joint venture agreement with a sovereign wealth fund in anticipation of its previously announced 425 Park Avenue ground lease acquisition in New York. Upon closing, Safehold’s 55% investment interest will total approximately $340 million. Pro forma for the addition of Alohilani and its share of 425 Park, Safehold’s total portfolio will grow to approximately $1.9 billion.
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, according to a prepared release. 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.
The company, which is taxed as a real estate investment trust and is managed by its largest shareholder, iStar Inc., seeks to deliver safe, growing income and long-term capital appreciation to its shareholders.