Safehold has completed a ground lease with Samuels & Associates and Mark Development to support the mixed-income redevelopment of a long-vacant site at 299 Broadway in Somerville, MA. The property, formerly occupied by a Star Market supermarket and idle for years, is slated to become a new multifamily community totaling 319 apartments. Financial terms of the ground-lease transaction were not disclosed.
The deal marks Safehold’s first transaction with Samuels & Associates and Mark Development, two multifamily developers based in Boston. Safehold, a ground-lease real estate investment trust, is using its structure to provide long-term, lower-cost capital intended to help the development team advance the project. The company indicated that combining its ground-lease capital with loan proceeds can give owners more flexibility to execute their plans and pursue value creation at the property level.
According to Safehold vice president Michael Paresky, the transaction is part of the firm’s effort to expand its footprint in the Boston metropolitan area while working with experienced multifamily sponsors. He noted that Safehold sees potential to grow its relationship with both Mark Development and Samuels & Associates on additional projects over time.
Redevelopment plans call for the original supermarket structure, which was demolished last year, to be replaced by two new residential buildings. Samuels & Associates and Mark Development will construct one building with 204 market-rate apartments. A second building with 115 affordable units will be developed by Beacon Communities and RISE Together, creating a mixed-income housing program across the site.
The project converts a long-underutilized parcel into new rental housing, adding both market-rate and affordable options in Somerville’s housing stock. While detailed construction timelines, development costs, and financing terms have not been released, the closing of the ground lease formalizes the capital structure for the site and enables the development teams to move forward with vertical construction planning.
