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iStar CEO Jay Sugarman said the 43-billion sale of its net lease portfolio culminates a successful investment strategy

Safehold, iStar to Merge, Creating Internally Managed Ground Lease Company 

Safehold Inc. and iStar Inc. said Thursday today that the two companies entered into a definitive agreement for a tax-free, strategic combination that will accelerate Safehold’s market leadership in the ground lease industry. The merger will also make Safehold the only internally-managed, pure-play ground lease company in the public markets.  

Under the terms of the transaction, Safehold will internalize iStar’s management team / intellectual property, replacing Safehold’s external management structure. Prior to the merger, iStar will spin off to iStar shareholders a new publicly traded entity that will own all of its remaining non-ground lease assets and $400 million of its Safehold shares. 

“This transaction is an important step forward in our strategy to significantly expand the use of modern ground leases in commercial real estate and further extend Safehold’s position as the pre-eminent ground lease company,” said Jay Sugarman, chairman and CEO of iStar and Safehold. 

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About Paul Bubny

Paul Bubny serves as Senior Content Director for Connect Commercial Real Estate, a role to which he brings 13-plus years’ experience covering the commercial real estate industry and 30-plus years in business-to-business journalism. In this capacity, he oversees daily operations while also reporting on both local/regional markets and national trends, covering individual transactions across all property types, as well as delving into broader subject matter. He produces 15-20 daily news stories per day and works with the Connect team and clients to develop longer-form content, ranging from Q&As to thought-leadership pieces. Prior to joining Connect, Paul was Managing Editor for both Real Estate Forum and GlobeSt.com at American Lawyer Media, where he oversaw operations at both publications while also producing daily news and feature-length articles. His tenure in B2B publishing stretches back into the print era, and he has served as Editor in Chief on four national trade publications. Since 1999, Paul has volunteered as the newsletter editor of passenger rail advocacy groups (one national, one local).

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