SAFE Enters San Antonio, Acquires Hotel Valencia Ground Lease

Safety Income & Growth Inc. (SAFE), a company focused solely on ground leases, acquired an existing one on the Hotel Valencia, located on San Antonio’s River Walk. The buy is the New York company’s first in San Antonio and third in Texas. Woodbranch Investments sold the lease, which it had acquired in 2017 for $14.3 million in 2017. The Valencia Group owns the 213-key building, a boutique hotel located at 150 E. Houston St.

SAFE, the first publicly-traded company focused on ground leases, is taxed as a REIT, and is targeting major markets in the United States. The Hotel Valencia ground lease features a remaining lease term of approximately 83 years, as well as fixed annual base rent escalations with a percentage rent component.

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