Safety, Income & Growth Inc. and iStar Inc. partnered to originate a new ground lease and first mortgage leasehold loan on an 8-story office property adjacent to the George Washington University campus in Washington, D.C. The building is scheduled to be converted into a 153-unit multifamily building beginning in late 2019 by experienced developer Insight Property Group. iStar provided the leasehold acquisition loan and SAFE provided a newly created lease under their unique “SAFE/STAR” one-stop capital program. This marks SAFE's sixth ground lease in Washington, D.C. over the past year, providing approximately $300 million in capital for customers to acquire, recapitalize, develop, and redevelop high quality office, multifamily and hospitality assets in the city.

The ground leasefeatures fixed annual base rent escalations and a 99-year lease term with CPI lookbacks every ten years. The existing 8-story office building will be fully renovated into a 153-unit multifamily property with a fitness center, lounge, and 3 roof decks. The property is a few blocks from the Foggy Bottom – GWU metro stop with access to three metro lines.

The building is located within walking distance to nearby shops, restaurants and tourist attractions including the White House and the National Mall.