New York State’s Weatherization Assistance Program

 

Weatherization Assistance Program  pic
Weatherization Assistance Program
Image: nyshcr.org

Based in New York and managed by John Salib, Castellan Real Estate Partners invests in undervalued real estate properties and renovates them to increase their value and efficiency. With a priority of improving energy efficiency in portfolio buildings, Castellan Real Estate Partners has been awarded $1.7 million in grants from the New York State Weatherization Assistance Program (WAP).

WAP provides financial assistance to families with low incomes to help with home improvements to reduce their heating and cooling costs. The program has assisted many people from underserved areas, particularly the elderly and people with disabilities, reduce their energy consumption and realize energy savings of more than 20 percent.

Only households with eligible incomes (below 60 percent of the state median income) can apply for weatherization assistance. For multifamily building owners to qualify, 50 percent of a building’s tenants must meet this income requirement. A typical weatherization process starts with an assessment of the individual’s home or apartment to check energy efficiency. From the results gathered, mitigating measures are then recommended. They include: sealing cracks to reduce air infiltration, insulating hot water tanks and pipes, insulating walls and attics, repairing or replacing heating systems, repairing or replacing doors and windows, installing energy efficient lighting, and correcting ventilation problems.

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Condos Gaining Popularity over Co-ops in Manhattan’s Luxury Market

 

Condos pic
Condos
Image: castellanre.com

A respected presence in the Manhattan real estate sphere, Castellan Real Estate Partners pursues opportunistic, value-driven acquisitions and development opportunities. Castellan Real Estate Partners has experience in a wide range of residential building types, from condominiums to co-ops.

A recent Mansion Global article pointed to a shift away from co-ops when acquiring residences in the Manhattan luxury real estate sphere. A growing percentage of high-end buyers are willing to pay a premium for the opportunity to purchase condos, which are typically newer additions in a competitive market. In addition, the ownership structure of condominiums is more flexible and allows prospective owners the chance to bypass “picky” co-op boards.

This shift toward condos is reflected in substantial price differences, with Manhattan co-ops commanding an average price per square foot of $999 in the last quarter of 2016. By contrast, condos deliver an average per-square-foot price of $1,749, with new developments attaining an average price of $2,791 per square foot. The result of these trends is that a number of co-ops are relaxing restrictions in ways that allow them to attract a broader segment of buyers.

Washington Heights Sale Shows Castellan’s Strengths

 

Washington Heights  pic
Washington Heights
Image: castellanre.com

A vertically integrated real property investment company, Castellan Real Estate Partners in New York has earned a reputation for delivering significant returns on investment. Since 2009, the firm has made a total of some $750 million in equity and debt transactions. In 2016, Castellan Real Estate Partners tripled its original investment in a Washington Heights property, selling it amidst competitive bidding for $18.2 million six years after acquisition.

The residential rental property, situated on 168th Street close to an express subway station and New York-Presbyterian/Columbia University Medical Center, consists of more than 80 individual units. With a total square footage of just over 40,000, it offers studio and one-bedroom apartments.

Castellan’s sale reflects the company’s focus on purchasing undervalued properties in neighborhoods with high potential, performing extensive upgrades, and choosing the most opportune time to re-enter the market. In selecting Washington Heights, the firm found a community that has recently attracted growing numbers of young professionals as renters. The neighborhood’s relatively inexpensive rents are part of that package, as well as its proximity to trendy restaurants and its multicultural atmosphere.

Harlem Residential Property Holds Promise for New Owner and Tenants

 

Castellan Real Estate Partners  pic
Castellan Real Estate Partners
Image: castellanre.com

Among New York City’s leading real estate investment firms, Castellan Real Estate Partners continues to focus on quality in the acquisition, development, and management of residential rental properties. The vertically integrated company has acquired some $750 million in both debt and equity real estate transactions. In its purchases, Castellan Real Estate Partners looks for properties with high potential to earn significant returns on investment.

In March 2017, the company realized the $23 million sale of a highly desirable multi-family housing complex in Harlem. It had acquired the property for $11.1 million in 2013, with the transaction with buyer Aulder Capital thus more than doubling the purchase price.

The five-building, 100-unit, fully occupied Harlem property is situated on West 146th Street, between Seventh Avenue and Frederick Douglass Boulevard. It consists of one- and two-bedroom apartments and is rent-stabilized.

The historic neighborhood of Harlem continues to develop and thrive, with many older and historic buildings undergoing 21st century renovations. Residential complexes with smaller units, such as the one on West 146th Street, tend to attract younger and more mobile renters. As these tenants move on, owners are able to remodel and charge market rent in keeping with those renovations.