A managing principal at New York-based Castellan Real Estate Partners, Paul Salib leads the company’s efforts in acquiring assets and overseeing its portfolio. Paul Salib’s firm takes financial viability into consideration as it maximizes every opportunity to reduce energy and resource usage throughout its numerous real estate holdings.
With the knowledge gained from energy audits it contracted Bright Power, Inc., to perform, Castellan has undertaken major projects including balancing and tuning of heat distribution in buildings, converting to natural gas boilers, and installing sophisticated heat monitoring and management systems. It has also undertaken smaller projects to improve energy and resource usage.
These small-scale projects include insulating roof cavities, air-sealing common door areas, using high efficiency bulbs in common area lighting, installing new toilets that control water usage per flush, and installing low-flow shower heads. Based on projected payback periods, Castellan will enjoy these projects’ economic returns during the firm’s ownership holding period. Many of these projects qualify for New York State Energy Research and Development Authority rebates as well, further reducing payback periods.
Paul Salib is managing principal at Castellan Real Estate Partners, a real estate investment firm. A co-founder of the firm, Paul Salib has been involved in real estate transactions totaling more than $1 billion. Castellan concentrates its investments in New York City and other major urban areas, primarily in the residential and retail sectors.
As more people migrate to urban centers, issues have been raised that these densely populated areas have a negative impact on the environment. Yet studies made by the European Commission Joint Research Center and the Center for Neighborhood Technology reveal that cities having the highest population densities actually emit the lowest volumes of greenhouse-gases per capita.
Irrespective of income level, the carbon footprint of city dwellers are smaller than their corresponding suburbanites. Since city dwellers live in buildings with multiple units having smaller living quarters and typically make frequent use of the mass transport system, among others things, there is a sharing of resources and thus fewer resources are used on a per person basis than among those living in single family homes.
Cities like New York are also taking carbon-reducing measures such as deploying trains and buses that use renewable energy. Castellan, for its part, has been taking steps to improve energy efficiency in its real estate portfolio, including converting to more efficient natural gas boilers in its buildings and installing energy-conserving dual pane windows.
The founder and managing partner of Castellan Real Estate Partners, Paul Salib oversees a wide range of New York City real estate investments. In March of 2017, Paul Salib facilitated the $23 million sale of a 100-unit Harlem portfolio spanning five multifamily buildings.
With the rental properties encompassing 100 units and 47,500 square feet, the value of the residential holdings has increased significantly over the past several years. When purchased in 2013, the 265-273 West 146th Street properties sold for $11.1 million, or less than half of the current price.
As described in a press release, the buyers saw this acquisition as a unique opportunity to take on a sizable portfolio with a younger demographic that frequently moves in and out of units. Each time a tenant moves out, the landlord has the opportunity to renovate, upgrade, and obtain the current market price on the rental. With one-bedrooms renting on average for $1,442 per month, the buildings currently enjoy a 100-percent occupancy rate.
An assistant adjunct professor at New York University, Paul Salib is founder and managing principal at Castellan Real Estate Partners in New York City. Since 2009, Paul Salib’s firm has been involved in real estate transactions exceeding $750 million in market value.
Castellan holds properties long-term and favors properties possessing long-term value potential that can be achieved through sound property maintenance and management. For the company, this equates to being receptive to the needs of its residents and dealing with them in a fair and honest manner. A great source of tension between residents and their landlord is the poor or decaying condition of the rental property.
Castellan frequently buys properties in a neglected state and devotes a significant amount of capital to bring these properties up to standard. This includes replacing boilers and converting them to natural gas for reliability and cost effectiveness, installing new dual-pane windows for improved insulation, restoring building facades, and adding video cameras for increased security, among many other improvements.
Open dialogues between tenant and owner bring to light many issues, helping to minimize building code violations. Castellan notes that responsive owners have happier residents who consequently are more likely to pay their rent on time.