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.
Noted for renovating its properties in line with best environmental practices, Castellan Real Estate Partners stands out as one of New York City’s most successful real estate investment and management companies. Since 2009, it has closed $875 million in deals based in debt and equity acquisitions. Moreover, Castellan Real Estate Partners continues to collaborate with city agencies that work to improve the energy efficiency of buildings and to reduce their carbon footprints.
Among these partner agencies is the city’s Department of Housing Preservation and Development. In operation for close to 40 years, HPD now serves as the largest city-based preservation and development agency for housing in the United States. Its charge: to encourage the growth of housing that is excellent in quality while keeping it within the financial reach of low- and medium-income citizens.
Through its work with New York’s mayor’s office, HPD engages in the monitoring and enforcement of the appropriate standards for housing and the preservation of significant buildings. Its financial initiatives include tax and loan incentives for property owners who reciprocally agree to keep rents for current and near-future tenants affordable. Its work has proven especially critical for senior adults and families transitioning away from homelessness.
The agency concentrates particularly on the construction and support of housing in communities known for their cultural diversity.
New York-based Castellan Real Estate Partners, co-led by Managing Director John Salib, has made a name for itself in one of the world’s most competitive real estate investment markets. John Salib helps lead a team of savvy professionals at Castellan Real Estate Partners and its financing arm, Castellan Capital.
The firm is offering rapid underwriting and closing of bridge loans in prominent real estate markets like New York, Miami, Boston, Los Angeles, and San Francisco. It also offers construction loans, only in New York. Due to its large amount of private capital and an in-house investment committee, Castellan can offer flexibility in structuring transactions to meet each client’s individual investment needs.
A high-profile bridge transaction the firm recently handled was a $4.5 million bridge-to-HUD (Housing and Urban Development) loan that was used to refinance nearly two dozen multifamily properties in Hartford, Connecticut. Twenty-three separate buildings, subject to a Housing Assistance Payment (HAP) contract, were included in the refinance loan. The borrower was able to withdraw equity and refinance the property much faster and more conveniently than through a traditional HUD transaction.