Founded by John Salib and Paul Salib, Castellan Real Estate Partners is a vertically integrated real estate company that invests in undervalued assets with strong potential for appreciation. In existence for over a decade, Castellan Real Estate Partners also provides bridge loans to real estate professionals in New York. Recently, the company launched Castellan Real Estate Income Fund II LP, leveraging its experience in bridge lending to capitalize on the underserved market for loans of $30 million and below.
The fund will issue first-mortgage loans of between $500,000 and $30 million at an interest rate of 7.5 to 9 percent. The fund, which targets a net yield of 9 percent plus with a strong emphasis on principal protection, will deploy its capital in New York and other metropolitan areas.
Here’s how the investment process will typically work. The firm’s team will source transactions through its broad network as well as through external marketing. Once it receives a loan request, it will initiate due diligence checks, financially model the opportunity for analysis, and if all is well, issue a term sheet.
Afterward, members of the team’s asset management division will visit the site, conduct environmental and historical reviews, perform an appraisal, and review financial documents. Finally, the firm’s legal team will do a background check on the borrower and approve titles before the investment committee gives its approval and the loan is closed. From there, the asset enters the servicing and monitoring stage.
The fund will issue first-mortgage loans of between $500,000 and $30 million at an interest rate of 7.5 to 9 percent. The fund, which targets a net yield of 9 percent plus with a strong emphasis on principal protection, will deploy its capital in New York and other metropolitan areas.
Here’s how the investment process will typically work. The firm’s team will source transactions through its broad network as well as through external marketing. Once it receives a loan request, it will initiate due diligence checks, financially model the opportunity for analysis, and if all is well, issue a term sheet.
Afterward, members of the team’s asset management division will visit the site, conduct environmental and historical reviews, perform an appraisal, and review financial documents. Finally, the firm’s legal team will do a background check on the borrower and approve titles before the investment committee gives its approval and the loan is closed. From there, the asset enters the servicing and monitoring stage.
