The development, located in a high-growth region of Austin, is backed by tax credit equity provided by Huntington Bank, with Berkadia managing the construction and permanent financing. This deal underscores Safehold's push into the affordable sector following the creation of a dedicated team in 2025. Steve Wylder, head of investments at Safehold, noted that the company’s ground lease model aims to provide the capital efficiency required to advance high-quality housing projects in competitive urban environments.
Safehold Finances Second Austin Affordable Housing Project with The NRP Group
A 336-unit affordable housing community is coming to northeast Austin by 2028, marking the second collaboration this year between Safehold and developer The NRP Group. The project utilizes a specialized ground lease structure designed to facilitate Low-Income Housing Tax Credit developments across the Texas market.
For The NRP Group, this venture adds to a portfolio that has spanned over 62,000 apartment homes since the firm's founding in 1994. By leveraging ground leases, developers can often navigate the complexities of long-term affordable housing construction more effectively. Both firms have positioned this project as a response to the sustained demand for residential inventory in Texas, further cementing a partnership that has already seen two successful deal closures in the capital city this year.
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