Castellan Snatches 125 Rivington Street for $9.8M

Posted on: September 23rd, 2016 at 5:00 am by
This image has been archived or removed.

Why is it that, in the year 2016, the Lower East Side continues to attract real estate speculators with terrible track records?

The latest to jump in on the fun is Castellan Real Estate Partners, a hedge-fund-backed investment group that just purchased 125 Rivington Street. According to public records, the five-story walkup (east of Essex) traded hands earlier this month for $9.8 million, roughly $3 million less than the initial asking price last December. The seller, 125 Riv LLC, previously owned the building for three decades.

The property has been on the market for nearly a year. Castellan obtained a largely vacant building, with 2,500 square-feet of retail space that has seen a series of pop-up endeavors in the last decade.

“This was an ideal opportunity for the buyer to reposition the property by renovating the vacant units and attracting an upscale retailer as well as millennials seeking to share a sought after loft apartment in the heart of the Lower East Side,” Eastern Consolidated broker Deborah Gutoff said in a press release.

So, let’s meet the new neighbors…

Castellan carries quite the reputation in Harlem where it employed the usual intimidation tactics to boot rent stabilized tenants for maximum gain. The Daily News wrote the following in March 2015:

Early last year [2014], Gov. Cuomo imposed an independent monitor on Castellan Real Estate Partners, owner of more than 50 rent-stabilized buildings in the city.

Financed by a hedge fund, Castellan has moved quickly to scoop up buildings in gentrifying neighborhoods like Washington Heights, Harlem, the South Bronx and East New York.

The firm’s chief executives, brothers Paul and John Salib, even touted in a confidential August report to investors the huge profit margins they’ve achieved by “value enhancement” — in other words, emptying apartments of previous tenants then sharply increasing rents.

At one of the buildings on E. 117th St., tenants have gone without gas for cooking or heat since before Thanksgiving. City records show the three buildings have more than 107 unresolved housing violations for mice, leaking pipes, lead paint, lack of window guards and fire exit doors that are locked.

Recent Stories

The Bizarre ‘Mumming’ History of Thanksgiving Masking

What follows is a reworking of a post originally published on Bowery Boogie in 2014. There was once a time when Thanksgiving customs more resembled Halloween masquerading than traditional turkey and history lessons. That’s right. So get out your masks, people! Thanksgivoween is upon us. Two key words: masking and mumming. To surmise thousands of […]

Children’s Magical Garden Files Lawsuit Against Developer Over Alleged Intimidation Tactics

The Children’s Magical Garden on Stanton Street is again battling its longtime nemesis, owner-developer of the neighboring parcel, The Horizon Group. Garden advocates led by Kate Temple-West filed a civil rights lawsuit Monday in New York State Supreme Court alleging that principal David Marom, who purchased the adjacent lot from Serge Hoyda in 2013, engaged […]

Pregnant Woman Shot by Parolee Boyfriend on LES Dies

A pregnant woman shot by her parolee boyfriend earlier this month died of her injuries last Thursday. The 27-year-old victim, who was about three months pregnant with the gunman’s baby, had been on life support since the November 11 incident, according to published reports. As previously reported, the perp – Bronx resident Dennis Fredricks, a […]

30-Story Tower at Beth Hamedrash Hagadol Site Takes its Spot in LES Skyline

It’s not enough to have Essex Crossing dominate the Lower East Side skyline around Delancey Street. Now, another. The hulking tower rising from the literal ashes of Beth Hamedrash Hagadol is already halfway to the top, currently sitting at a healthy fifteen stories. This much after the better part of a year under construction. As […]

Uncapped: CAINE ONE Forever

Hey Boogie faithful! Guest writer, Freddy Alva, joins us again to go beneath the paint with us at Uncapped. The following is a stylized excerpt from the Queens Graffiti Legend’s Black Book containing interviews with LADY PINK, ROGER, Martha Cooper, FREEDOM, NOTCH 56, JIMMY 131, ZAR, PHANTOM and CAINE, childhood friend Eileen Galindo. Head over here […]