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.
Over the course of his career in New York real estate, Paul Salib has developed experience across a range of transactions. As managing principal with Castellan Real Estate Partners, Paul Salib incorporates components of value investing during the investment process.
At the most basic level, value investing refers to the trading of stocks below their intrinsic value–in other words, the actual per-share value of the underlying business. A stock’s intrinsic value may or may not align with its market price, or the actual price at which a stock is traded. Value investors look to purchase stocks when the intrinsic value rises above the market price, and sell stocks when the market price eclipses the intrinsic value.
Value investing can take a number of forms, depending on the objectives of the investor. Investing guru Warren Buffett famously invested in “cigar butt” value investments, which gave investors a few free “puffs” before the intrinsic value and market value realigned. At other points in his career, Buffett sought out value investments with more stable outlooks in the long term. These long-term value investments often straddle the border with growth investing, which attempts to identify companies with high potential for growth and invest in them for long periods of time.