Representative Castellan Real Estate Partners Fund II Investments

With headquarters in New York City, Castellan Real Estate Partners is guided by Paul Salib and John Salib, and provides a range of vertically integrated investment and management solutions. For Castellan Real Estate Partners’ Fund II, representative loan terms and conditions involve transactions in the $500,000 to $30 million range.

Considering transitional, distressed, and stabilized commercial and residential property types, borrower loans are typically floating rate, adjustable monthly, and in the seven to nine percent interest rate range. As much as 65 percent of property value can typically be included in the loan. Terms are up to 24 months, and it may be possible to negotiate longer terms. Acceptable collateral includes first mortgage, personal guaranty, or a pledge of ownership escrows, interest, and rents.

One representative loan involved the Fund providing a $24.8 million, 24-month bridge loan, with a loan to value rate of 38 percent. The investment funds were utilized to refinance a Simi Valley, Los Angeles retail center, with the interest rate to borrower the London Interbank Offered Rate (LIBOR) plus 5.5 percent. Castellan’s expected gross annual return for the first lien position on the 90 percent-occupied retail center to be 12.2 percent.