Safehold Boosts Its Market Share with Midtown Office Ground Lease
Safehold Inc. is upping its market share in the New York City arena. The firm has just closed a $235 million ground lease at 135 West 50th St. Another transaction to add to its books before year-end.
NEW YORK CITY – Safehold Inc., a real estate investment trust specializing in ground leases, is upping its market share in the New York City arena. The firm has just closed a $235 million ground lease at 135 West 50th St.
Business has been well for the REIT who has seen a steady flow of demand from institutional investors aiming to effectively manage a ground lease on the land beneath their buildings, according to Marcos Alvarado, president and CEO at the firm.
“Institutional owners of commercial real estate are increasingly understanding the benefits delivered by a Safehold™ ground lease,” said Alvarado in a prepared statement. “We are excited to add another high-quality asset to our rapidly-scaling portfolio.”
George Comfort & Sons, Inc. owns the 929,000-square-foot office building at 135 West 50th St. between 7th and 8th avenues, which is currently undergoing a capital improvement renovation program to better compete with more modern buildings in the Midtown market.
Safehold has been active in the New York market as of recent. This acquisition is the latest addition to another procurement of an existing ground lease at 425 Park Ave. for approximately $620 million.
The REIT entered into a joint venture agreement with a sovereign wealth fund in early September to execute the transaction. Safehold holds a 55% stake in the venture, acting as the primary manager in the agreement.