Sustainability is a trending topic for many concerned individuals, from builders and real estate developers to property managers and apartment residents. As the 2019 Sustainable Living Index study published by AMLI Residential reveals, 89 percent of residents conveyed concerns about climate change.
When it comes to their choice of housing, 80 percent indicated that living in an environmentally friendly apartment offers health benefits, and 61 percent claimed that they are willing to pay more for a chance to live in a sustainable neighborhood. Millennials expressed the highest desire for a green community, followed by Gen Xers, Gen Zers, and finally Baby Boomers.
Since establishing New York City-based Castellan Real Estate Partners in 2009, Paul Salib has performed debt and equity real estate transactions totaling over $1.2 billion in worth. Part of Castellan’s portfolio is managing residential complexes in the New York City metropolitan area. Paul Salib and his team have added value through property enhancements, such as new windows, and various energy efficiency measures.
As communities worldwide continue to develop at a rapid pace, energy-saving and other environmental building practices are becoming increasingly important. According to conservative estimates, buildings account for 30 percent of landfill waste and 68 percent of the total electric consumption in the United States. From planning and design to the construction process, green and sustainable buildings utilize environmentally responsible and resource-efficient processes that reduce negative impacts on human health and the environment. Implementing green building practices can preserve ecosystems and natural resources, improve air quality, and reduce waste. Additionally, such practices can reduce operating costs and increase profits through greater efficiency. Through strategies such as converting oil-burning boilers to duel-fuel boilers, Castellan has saved energy, minimized its carbon footprint, and lowered operating costs. These energy-saving measures are a core part of the firm’s ESG business practices and they are an essential part of being a good corporate citizen.
As managing principal of Castellan Real Estate Partners in New York City, Paul Salib oversees the firm’s investments in debt and equity real estate transactions. At Castellan, Mr. Salib has overseen real estate transactions with a market value in excess of $700 million. When away from Castellan, Paul Salib also works at Schack Institute of Real Estate at New York University as an assistant adjunct professor.
Castellan recently sold a four-building portfolio of East Harlem rental properties to the Emerald Equity Group in August 2017 for $24.8 million. Three of the buildings on East 117th Street feature a few commercial units along with more than 100 residential units. Of the $24.8 million, Emerald paid $9 million for the 1661 Park Avenue location that features 34 rental units and a single retail unit in 22,000 square feet of space.
Castellan bought the properties in 2013 for $13.5 million, believing that there would be an increase in demand for real estate in the neighborhood. As property values rose in Upper Manhattan, families started looking to East Harlem for housing. There is a perception that the neighborhood has improved since the acquisition.
Castellan Real Estate Partners is led by its founder and managing partner, Paul Salib. Backed by a significant amount of private capital, Paul Salib’s company is known for making sizable profits on in-demand real estate properties.
Castellan Real Estate Partners recently sold an East Harlem multifamily property to Emerald Equity Group, led by real estate investor Isaac Kassirer. Emerald Equity paid Castellan Real Estate Partners nearly $25 million for the four-building portfolio of mixed-use rental properties, according to the Commercial Observer, New York’s expert source on commercial real estate deals. Castellan acquired all four of the early 20th-century walk-up buildings for a combined $13.5 million in 2013.
With a total of more than 100 residential units and three commercial units, the three buildings on East 117th Street have a combined 42,000 square feet. The fourth property is on Park Avenue and covers 22,000 square feet.