CREIF II Employs a Measured Approach to Lending

A vertically integrated and full-service real estate investment firm, Castellan Real Estate Partners was co-founded by John Salib, who also serves as a co-managing partner. The firm’s management possesses considerable experience in executing real estate transactions. In addition, Castellan Real Estate Partners established Castellan Real Estate Income Fund II to cater to an underserved $30 million and below bridge loan market.

The fund has taken a measured approach in its lending. Since its launch on March 29, 2017, through March 31, 2020, there have been 2,309 loan inquiries totaling $20.3 billion. Out of these, there have been 537 loans quoted valued at $3.4 billion. Yet loans closed amount to only 80 selected with a total value of $564.1 million. And of the 80 loans, five are proven, repeat borrowers.

While the loan to value ratio (LTV) is set at up to 65 percent, the loan portfolio’s weighted LTV is a prudent 45 percent. All loans are covered by a first lien on the mortgaged property. With a net yield target of over 9 percent, CREIF II still takes prime consideration in preserving the principal of investors in the fund.