Why Responsible Property Managers Invest in Capital Improvements

Paul Salib received his master’s in real estate finance and investment from New York University (NYU). He holds an assistant adjunct professorial position at the New York University School of Professional Studies Schack Institute of Real Estate. Concurrently, Paul Salib serves as the managing partner of Castellan Real Estate Partners, a New York-based real estate investment firm he founded in 2009. With Mr. Salib at the helm, Castellan practices responsible property management. 

The first rule of responsible property management Castellon follows is to put tenant needs first. Acting responsibly as a property manager involves investing considerable capital into property-wide renovations and enhancements. Examples of capital improvements include new windows, boiler replacements, natural gas conversions, modern intercom systems, closed-circuit television (CCTV), and any other physical building upgrades that will improve the tenant's experience and increase a property's value and/or usability. 

Capital investments such as these often require significant outlays, but their effects eventually return to the business’ bottom line over time. Well maintained buildings ultimately require less money spent on maintenance, and are much more likely to appreciate in value in a rising real estate market.

Treating Tenants Well - Castellan Real Estate Partners

A managing principal at New York City-based Castellan Real Estate Partners, Paul Salib leads in acquiring and managing the real estate assets under Castellan’s portfolio. As a long-term owner of commercial properties, Paul Salib’s firm invests a significant amount of capital in fixed-asset-related outlays, in close alignment with its philosophy of treating its tenants in a responsive, honest, and respectful manner. 

Adept at seeing the long-term value and potential of a property, many of the buildings acquired by Castellan have been poorly maintained and neglected. This has often led to strained relationships between the previous owner and the tenants. Upon acquisition, Castellan invests the capital required to bring the building up to standard, including replacing boilers, updating fire alarm and security systems, fixing leaking roofs, and installing child safety guards on windows. 

The firm also maintains active and open dialogues with its tenants, which helps Castellan address maintenance issues and significantly reduce the number of building code violations. Well-treated residents are more content and tend to pay their rent in a timely manner, a situation beneficial to both parties.

Upgrades That Increase the Value of Older Buildings

Paul Salib is a respected presence in the New York commercial and residential real estate sphere. Heading Castellan Real Estate Partners, he seeks out value-driven acquisitions. Paul Salib has opportunistically sold several properties over the past year that doubled and tripled the price of the original acquisition.

One aspect of the Castellan Real Estate Partners commitment to responsible property management involves addressing issues of physical deterioration under past owners. Enhancements undertaken begin with measures that encompass energy-efficient lighting and refrigerators, as well as doors with weather-stripping and dual-pane glass windows that improve insulation.

In addition, old boilers are replaced, and new units are converted to work with natural gas, which saves on costs and provides more reliable heat. Roofs are replaced as needed and insulation installed that prevents water incursion and traps heat during the colder months. Video cameras and advanced intercom systems enhance security and safety, as do features such as smoke detectors and child guards on windows.

Three Tips for Investing in New York Real Estate

Real estate investor Paul Salib serves as managing partner of Castellan Real Estate Partners, a firm he founded in New York City in 2006. In this capacity, Paul Salib pursues a broad range of debt and equity real estate transactions throughout New York and beyond. 

Since its early days, New York City has played host to one of the most diverse real estate markets in the world. Here are three tips to help you get started as a New York real estate investor:

1. Find the right location. It may be tempting to find an investment property in a well-established area, but these markets are often saturated from a development perspective. For this reason, many investors instead look toward neighborhoods with high potential for growth. 

2. Compare sales and rents. A comparison between the sale price of a property and average rents in the area may provide a nuanced look at the property’s value. Investors often look to buy low in a high-rent area, particularly if they plan to rent the property for an extended period of time. This advice applies to investment properties in any market, but New York’s high rent makes it especially important to consider. 

3. Maximize bedrooms. If investors plan to rent their investment properties, they should almost always try to maximize the number of bedrooms in the unit. Renters typically pay by the bedroom, regardless of how small the bedroom may be.

How to Reduce Your Carbon Footprint When You Live in an Apartment

Castellan Real Estate Partners founder Paul Salib oversees the acquisition and management of residential properties in New York. In order to decrease expenses and help residents reduce their carbon footprints, Paul Salib and his associates frequently upgrade their newly acquired properties with energy-efficient systems.

People who live in urban settings tend to use fewer natural resources than people in suburban or rural communities. They live in smaller, more concentrated dwellings and usually rely more on mass transit. By pooling resources like this, city residents reduce their carbon footprint. However, there are still additional ways that Americans who live in densely populated areas can live more sustainably.

Many people can reduce their energy usage by up to 40 percent simply by unplugging unused appliances. Chargers, coffee makers, and other small appliances can draw a surprising amount of power even when they are not in use.

Cutting back on heating and cooling can also help. If you can, consider adjusting your thermostat in order to reduce emissions. If you cannot access the thermostat in your rental, you can still use drapes to insulate your windows.

Recycling more is another good way to help. Residents of most apartment buildings have access to recycling services. Urban areas usually have resources for recycling other materials, such as packing peanuts and batteries.

Castellan’s Three-Phase Energy Efficiency Audits

A graduate of both Syracuse University and New York University, Paul Salib leverages his education and his experience in real estate and finance to the benefit of Castellan Real Estate Partners, which he founded in 2006. One of Paul Salib’s key areas of focus is improving the energy efficiency of buildings in the firm’s property portfolio, thus lowering fuel costs and reducing the buildings’ carbon footprints.

Castellan partnered with Bright Power, Inc., an engineering firm, to conduct in-depth audits across all of its buildings with the aim of identifying methods of reducing operational costs and saving energy. Each audit followed three phases:

1. Engineers inspects the building, record their findings, and prepare a general audit report that highlights their recommended energy saving improvements and strategies;

2. Castellan conducts a review of the audit to create a cost and benefits analysis for each suggested improvement; and

3. Upon selection of the relevant improvements for a building, Castellan bids out the work to contractors.