Co-founded by John Salib and Paul Salib, Castellan Real Estate Partners is a fully-integrated real estate investment firm headquartered in New York. By combining all aspects of real estate investments under one roof, from property acquisition to development, management, and financing, Castellan Real Estate Partners has developed unique expertise in scouring the market for opportunities and exploiting them.
Castellan has acquired many propertiesthat were poorly managed by previous owners and has undertaken significant changes to improve their physical condition and internal operations. These include installing new dual-pane glass windows, replacing boilers, replacing roofs to prevent water leakage and adding insulation, installing energy-efficient lighting and fixtures, and installing video cameras and upgrading intercom systems. These, alongside better management, have greatly improved the value of their properties, enabling the company to sell them at top dollar. Two examples of this are a 92-unit Brooklyn portfolio it sold in 2018 and a 100-unit Harlem portfolio it sold in 2017.
The 2018 sale was for two residential buildings in Brooklyn with 92 units combined. The real estate firm sold them for close to $19.3 million, five years after buying them for only $8.6 million. The 2017 sale was for five multifamily buildings in Harlem that went for $23 million, double what the real estate firm had paid for them in 2013.
Castellan Real Estate Partners is a New York-based fully-integrated investment firm that deals with real estate investments and development, lending, and property management. Co-founders John Salib and Paul Salib established Castellan Real Estate Partners during the U.S. 2008/2009 financial crisis to invest in distressed real estate investment opportunities.
Distressed property sales are associated with unique challenges that every investor should be aware of. For starters, it is best to seek the services of an expert who understands the intricacies associated with distressed properties.
Numerous certifications sharpen the skills of real estate agents that want to focus on the sale of distressed properties. For instance, the National Association of Realtors introduced a Short Sale and Foreclosure Certification program in 2009 where realtors familiarize themselves with both federal and state laws associated with foreclosures and short sales. In addition, there is a Certified Distressed Property Expert Certification offered by the Distressed Property Institute. When investing in distressed properties, it is vital to seek the services of an agent who whether they’re certified or not, has previously closed deals on distressed properties and is capable of successfully guiding you through the process.
Co-founded by managing partners Paul and John Salib, Castellan Real Estate Partners in New York City has conducted debt and equity transactions worth more than $1 billion in its 10 years in operation. In addition to its work in the development of investment properties, Castellan Real Estate Partners also hosts a capital lending division, through which the firm provides bridge and construction loans to clients.
The capital division of the firm is noted for its ability to quickly and easily meet borrower needs, as evidenced in the following three loan cases.
1. Acquisition in the East Village. The firm was able to produce a bridge loan of $5.5 million for a client in the course of six days to meet the borrower’s desire to acquire a multifamily building in the East Village of Manhattan. The capital vision’s team worked over Memorial Day weekend to ensure the funding was secured.
2. Mixed-Use Portfolio in Brooklyn. Providing the bridge loan in just one week, the capital division was able to help a client refinance a portfolio of five mixed-use properties in the Sunset Park neighborhood of Brooklyn. The total space of the five buildings encompassed 42,000 square feet.
3. Senior community in Maryland. The division was able to offer bridge financing worth $5.4 million much more quickly than the time required by traditional lenders for a client who wished to procure a senior community for individuals aged 55 and older. The team was able to provide the loan with remarkable speed due to the small, discretionary, and highly experienced committee at the helm.
Currently valued at $900 million, Castellan Real Estate Partners has invested heavily in residential and retail properties in New York and other metropolitan cities since 2008. Led by brothers Paul and John Salib, the company often targets mid-sized properties valued at $5 -$30 million. Committed to creating a margin-of-safety strategy when it comes to investment, Castellan Real Estate Partners structures deals that are highly profitable. In March 2017, Castellan sold five buildings in Harlem for $23 million to Aulder Capital, another real estate investment firm with portfolio holdings in Manhattan, Brooklyn, New Jersey, and Connecticut.
Encompassing a total of 100 residential units, the five buildings situated between Frederick Douglass Boulevard and Seventh Avenue were first acquired by Castellan for $11.1 million in 2013. The influx of residents to New York and the increasing demand for rental apartments, particularly in Harlem, made the investment extremely valuable. Although the buildings are comprised of one- or two-bedroom units only, they are occupied at 100 percent. With proper maintenance and consistent renovation to cater to younger demographics, the new owners can expect these buildings to rise in market value.