EXCLUSIVE: Safehold CEO Jay Sugarman Talks Revolutionizing Real Estate Ownership On 'Power Hour'

When Safehold Inc.'s SAFE Jay Sugarman identified that the old ground lease model in commercial real estate was broken and useless, he set out to change it, the CEO shared in an exclusive interview Wednesday on Benzinga's YouTube show "Power Hour."

Safehold aims to revolutionize real estate ownership by providing a better and more efficient way for owners to unlock the value of the land beneath their buildings.

Changing The Industry: Safehold modernized the ground lease industry and made it user-friendly, he said, adding that he believes the company created a ground lease industry that can become a $1 trillion business.

Corporations have been separating their operating businesses from the underlying real estate in order to focus capital on their operating businesses for years, Sugarman told Benzinga. 

These corporations sell off the real estate assets that don't provide the same growth potential as the operating businesses, he added.

Safehold introduced this capital efficiency concept into the $7 trillion commercial real estate industry, which allows the company to build a diversified portfolio of land across the country's top markets, the Safehold CEO said.

Safehold leases the land to building owners, typically for 99 years and at the end of the lease term, the building owners give Safehold whatever is on top of the land, he said.

Watch the full interview here:

Value Prospects: Investors have never had the opportunity to invest in such an asset class before, Sugarman emphasized. 

It took a lot of effort for Safehold to build the company from a $400 million valuation to a $4 billion valuation, but it has put the foundation in place to grow into a $40 billion company, he said. 

Sugarman described the company as having "double-barreled growth" because the value of its existing assets are growing, while it's simultaneously acquiring new assets. 

SAFE Price Action: Safehold has traded as high as $84.99 and as low as $47.51 over a 52-week period.

At last check Wednesday, the stock was down 0.43% at $78.50.