With real estate veteran John Salib as managing partner, Castellan Real Estate Partners acquires undervalued real estate properties and renovates them to increase their commercial value. In August 2017, Castellan Real Estate Partners sold a four-building portfolio to Emerald Equity Group for $24.8 million. It had acquired the four buildings in 2013 for $13.5 million. The four-building group in New York City included three buildings between First and Second Avenues and another located on 1661 Park Avenue along East 117th Street. The first three properties occupy 42,000 square feet combined and feature over 70 rental units and two commercial premises. These were sold for $15.8 million. The Park Avenue building occupies more than 22,000 square feet and features 34 rental units and one retail unit. It was sold for $9 million.According to Castellan’s managing director Etan Slomovic, the company was able to realize a significant profit from the sale because of rising property values. These were spurred by higher market activity and both public and private investment in the East Harlem neighborhood. The company’s early acquisition of the buildings four years ago enabled it to fully capitalize on the increased demand in the neighborhood.
Over the past decade, Castellan Real Estate Partners in New York has amassed some $750 million in equity- and debt-related investments. The company’s track record includes the acquisition of under-performing, often historically significant, properties in the city, renovating them in keeping with contemporary tenant-friendly and “green” practices, and reselling them at a substantial profit. Castellan Real Estate Partners’ focus on reducing the carbon footprint of its buildings parallels recent, similar efforts of New York City itself.The city announced one particularly notable program in early 2017. The NYC Carbon Challenge for Commercial Owners and Tenants originated in Mayor Bill de Blasio’s concern about the damage climate change was inflicting on the city.The Real Estate Board of New York is among the professional groups to join with the mayor in this effort. Other cooperating bodies include local universities, medical facilities, and hotels. The challenge aims to halt all new waste going into landfills by 2030 and reduce greenhouse gas emission levels throughout the city 80 percent below their levels in 2005 by 2050.Because about one-third of New York’s greenhouse gas emissions originate with commercial buildings, private-public partnerships in this area are essential. The new Challenge for Commercial Owners and Tenants builds on the initial NYC Carbon Challenge Program effort launched in 2007.
