Castellan Real Estate Doubles Investment in East Harlem

 

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Castellan Real Estate Partners Profitably Sells East Harlem Portfolio

 

East Harlem pic
East Harlem
Image: castellanre.com

Based in New York and led by Paul and John Salib, Castellan Real Estate Partners seeks out opportunistic development, property asset management, equity investment, and lending pathways. In August 2017, Castellan Real Estate Partners announced the $25 million sale of an East Harlem portfolio spanning four buildings to Emerald Equity Group, which is led by investor Isaac Kassirer.

The high-profile transaction encompassed $15.8 million paid for three East 117th Street properties spanning 42,000 square feet. With two of the buildings contiguous, they cumulatively offer two commercial units and 74 rental units. In addition, Emerald acquired the 22,000-square-foot property 1661 Park Avenue, which encompasses a retail unit and 34 rental units.

Situated in locations that are increasingly “on the radar” of those seeking multifamily properties, the buildings’ residential units are more than 90 percent rent-stabilized. Particularly in East Harlem, the expectation is that rents have substantial room for growth. With investments continuing to funnel in, a proposed rezoning that is within a public review process would allow residential density and new retail opportunities.

With Castellan having purchased all four walk-up prewar buildings in 2013 for $13.5 million, the company made a significant profit on the transaction.