Gelt Inc.

Gelt Inc. Attends Bakersfield Chamber of Commerce Annual Dinner Gala

2012-01-27T15:07:00.000-08:00

On January 27th, 2012, Keith Wasserman and Evan Rock of Gelt Inc. attended the annual Bakersfield Chamber of Commerce Annual Dinner Gala at the Bakersfield DoubleTree Hotel. The event as a great success with hundreds of business leaders in the community in attendance. Some of the notable businesses that are members of the chamber are Citizens Business Bank, Occidental Petroleum, Chevron, San Joaquin Community Hosptial, Castle and Cook, and CBRE.

The event was titled "Getting Back the American Dream." At the event there were actors dressed up as Benjamin Franklin, Albert Einstein, Thomas Jefferson, and George Washington. They all put on a great performance with singing, dancing, and a great dialogue about the current economy and the US economy at the time when they were around. Click the video below.

New Gym at Vernon Vista

2012-01-23T17:27:00.000-08:00

A gym is a great amenity to have at any apartment community. When we purchased the Vernon Vista apartments there were two forlorn existing clubhouses. One we upgraded into a state of the art management office that is now professionally presented and provides prospective tenants a great first impression into our community.

The second clubhouse was a vacant room that used to be used as a community center for the property. It had been vacant and unused for years. We decided to do something with this vacant space and surveyed the residents to see what they would like to see. The results were overwhelmingly in support of a gym.

We heeded the advice of our residents and constructed a brand new gym with refurbished equipment that is like brand new, brand new flooring, great lighting, a sliding glass door to the pool, and a camera system that will monitor the space.

The official ribbon cutting of the gym will take place soon and we are so happy to provide this amenity to our residents who will now be able to cancel their gym memberships and save a lot of money!

Vernon Vista Achieves GSF “Certificate of Achievement” award for “Most Improved Complex”

2012-01-20T14:35:00.000-08:00

Vernon Vista had a remarkably strong fourth quarter performance. We ended the year with only one available unit to rent. Our onsite manager Maria and GSF's regional property manager Sonya helped to make this property a real success.

Vernon Vista achieved a “Certificate of Achievement” award from our management company for the “Most Improved Complex” in their portfolio of twenty-eight apartment complexes in Bakersfield totaling 2,247 units. Vernon Vista’s recognition is due to a 38.65% increase in Operational Cash Flow year over year!

Gelt Inc. Attends StandWithUS Festival of Lights

2012-01-06T16:09:00.000-08:00

Keith Wasserman of Gelt Inc. and Gelena Skya of Charles Dunn

Gelt strongly supports StandWithUs. On December 11th, 2011 Steve and Rita Emerson and Adam and Gila Milstein were honored at a grand banquet hosted by Emcee Comedian Howie Mandel. "StandWithUs is a committed, energetic, and versatile organization that employs a breadth of powerful strategies to raise consciousness and understanding of the state of Israel among key decision-makers, the media, the general population, and the next generation."

StandWithUs is a nonpartisan education organization that empowers leaders and grassroots activists to advocate for Israel in an informed and dynamic way.

StandWithUs is dedicated to informing the public about Israel and to combating the extremism and anti-Semitism that often distorts the issues.

Gila Milstein and Haim Saban

Howie Mandel, Comedian and TV Personality

Gelt Inc. Attends Moriah Breakfast Featuring Jason Post of Post Investment Group

2011-12-09T11:32:00.000-08:00

Keith Wasserman and Jason Post

On December 7th, 2011 Keith and Damian of Gelt Inc. attended the monthly Moriah Society Breakfast at the Beverly Hills Peninsula Hotel. The featured speakers were Jason Post and Jack Ehrman of Post Investment Group.

Both Messrs. Post and Ehrman were fantastic speakers. They both eloquently discussed their histories in the real estate investment industry. Mr. Post comes from an entrepreneurial real estate background while Mr. Ehrman's history with real estate was more on the institutional side. They both complement each other very well and have created a great company.

Mr. Post is the founder of Post Investment Group (“Post”) and serves as the President of the Company overseeing day to day operations and strategic vision of the business. Mr. Post has directed over 45 real estate transactions totaling over $500 million in capitalized value and has taken over 20 deals full-cycle and has acquired and operated more than 14,000 apartment units.

Mr. Ehrman has held various positions with Colliers, Colony Capital, and Maguire Properties. He has been directly involved in over $6.5 billion of property acquisitions and over $7.5 billion in real estate transactions, including the acquisition, joint venture, development and financing of trophy office buildings and apartment complexes ranging from C- to ultra-luxury. As a principal multi-family investor, Mr. Ehrman has acquired over 8,000 apartment units.

We found it interesting that Post was competing for some of the same assets that we were bidding on. I am sure we will be continuing to here a lot about the rapidly growing Post Investment Group in the years to come.

Gelt Attends I.L.Care Event: A Night to Remember Featuring Musical Performances by Moshe Peretz & Matisyahu

2011-11-20T23:59:00.000-08:00

Keith Wasserman of Gelt Inc. at the I.L.Care Event: A Night to Remember

On Sunday, November 20th, 2011 Gelt attended a fundraiser concert put on by the Israeli Leadership Council (ILC) at the Gibson Amphitheater at Universal CityWalk.

The ILC is an organization that Gelt supports. The ILC was formed in June 2007. According to the ILC website, "It has allowed for the first time an organized and synergetic formation of an Israeli American community in Los Angeles through community empowerment, philanthropy, and activism. The vision of the founders designed to further vital goals that serve the common good of Los Angeles, other major metropolitan cities in which Israeli Americans live, the United States, and the State of Israel."

I was very impressed by the amount of people that were there. All of them pledged to volunteer at least four more hours for various causes under the ILC umbrella of support groups. Gelt looks to get more involved with the ILC and sponsor more of their events.

Gelt's ad in the ILCare Program

Shawn Evanhaim, Director of the ILC

Haim Saban

David Siegel, Consul General of Israel in Los Angeles

Israeli Actress Moran Atias

Matisyahu

Israeli Singer Moshe Peretz

Gelt Attends AMA Projections and Perspectives for Apartments in Phoenix, Arizona

2011-11-13T00:09:00.000-08:00

Damian Langere, Tom Simplot - Phoenix District 4 City Councilman, and Keith Wasserman

Keith Wasserman at the AMA Event

On Thursday November, 10th, 2011, Keith Wasserman and Damian Langere of Gelt Inc. attended the Annual AMA Projections and Perspectives for Apartments in Phoenix, Arizona. This annual event is hosted by the Arizona Multihousing Association and took place at the Phoenix Convention Center.

The event consisted of speakers on three different panels followed by a keynote speech by Elliot Polack of Elliot D. Pollack and Associates.

The first panel discussed Arizona's economic outlook. The economic outlook for the state is beginning to look up. Don Cardon, the head of the Arizona Commerce Authority described that inquiries from new clients in the "Clean Tech and Renewable Energy," "Aerospace and Defense," and "Science and Technology" industries are up 350% year over year.

For the past five decades the state of Arizona has been one of the top states in the nation in job growth, income growth, and population growth. Arizona relied heavily on construction, real estate, and financial businesses during the last boom and these industries have gotten hit the hardest during the recent recession. Leaders in the community are trying to diversify the region's businesses to bring in new types of enterprise. China for example has a $1 trillion commitment to solar. Many new solar businesses have set up shop in the business friendly state of Arizona.

A "flight to quality" has been recently occurring. There has been a tremendous compression of cap rates on "A" quality apartment properties in primary markets such as Los Angeles, New York, San Francisco, and Washington DC. Secondary cities and tertiary cities have not seen as big of a rise in values except in the Class A space.

Rents are still soft in today's rental market with 56% of sub markets in Phoenix lowering their rents quarter over quarter. The brokers have also started to see Class "A" apartments reach a ceiling in the rent they can charge because of the intense competition with shadow inventory of non owner occupied single family homes. The brokers recommended underwriting 2-3% rental growth for 2012 to potential investors.

Smart operators will increase revenue creatively using strong management techniques and technology such as Lease Rent Options Systems. Also, providing renters with amenities is key in order to attract new tenants and retain existing tenants. The brokers spoke about how the "smart money" buys in the right sub markets and operate assets creatively.

The Chandler corridor had a slow trickle down in growth recently while sub-markets such as Scottsdale, North Tempe, and North Mesa have seen increased growth. The West side of Phoenix has seen the biggest growth. There has been a big run up in rents but now that is beginning to flatten. The North sub market has had very little and next to no growth. Glendale remains one of the highest concessions areas in Phoenix.

Transactions have slowed down according to the broker panel. Rent growth numbers are not what buyers have expected. There is fear again back in the markets. Prices have flattened and are now pulling back slightly. The brokers have not seen as many offers on deals as in the past year at this time. Buyer have begun to push back more than past three or four years based on poor property condition and neglect from buyers that purchased their assets at the top of the market.

100+ unit buildings were selling at an average of $49k per unit in 2010 now they are selling at an average of $59k per unit. However increasing values have temporarily stalled.

Prices are now slightly decreasing while cap rates are increasing. There are fewer offers on deals. Competition is down. Fannie Mae and Freddie Mac have been the main vehicles for financing most apartment properties in Phoenix.

DSCR (Debt Service Coverage Ratios) are currently underwritten by lenders in the 1.25-1.35 range. The contract purchase price does not indicate the best value of a property to lenders. Lenders are imposing their own methods of valuing a property. They are typically lending up to 80% LTV. Additionally, lenders are focusing on the global cash flow of potential borrowers. Borrowers need experience and liquidity to handle "what if" scenarios. Lenders also seek borrowers with a net worth of 100% of the loan amount and 10% liquid of the total loan. Also, the lenders are carefully looking at a borrower's past historical performance. Lenders are picking borrowers with experience in a specific asset class and market location.

Currently, life insurance companies and banks are beginning to be more competitive with the GSEs. Life insurance companies alone have funded the acquisition of 2,500 units in Phoenix in 2011 with 5-7 year loan term, and with rates comparable with Fannie and Freddie. Life insurance companies provide a flexible prepayment penalty. They also offer rate lock terms that are faster and more desirable. They are not as tough on current property operations/occupancy upon closing loan if these items slip while the property is in escrow. However, it is still tough for life insurance companies to compete with Fannie and Freddie on fixed rate 10 year loans.

Other interesting things we learned at the conference were that renter demographics are seeing a strong tail wind from students living in student housing in Tempe going to ASU and then graduating and staying in Phoenix and moving into local apartments.

The lender panel spoke of B quality assets trading in the high 5 to low 6 cap rate range while C quality assets are trading in the high 7 cap rate range.

REITs have been net sellers in Phoenix. We actually purchased our Phoenix property "The Colonnade Apartments Homes" from AIMCO, one of the nations largest publicaly traded REITs.

Smaller buyers and individuals with private capital have been the main acquirers of Phoenix apartment properties. Some of the lenders predicted that "1031 Exchange money will be hitting the market like a storm."

Additionally, there has been a tremendous surge of Canadian buyers of single family homes and apartment properties in Phoenix due to the favorable exchange rate for Canadians.

Insurance rates have been slowly lowering and are currently around $150 per unit in buyers' proformas. Property taxes is in a tough spot. Property taxes are very property specific. No buyers are underwriting property tax decreases. The professionals on the panel told the audience to plan on increases. It has been difficult to predict property taxes and will remain so.

There has been a resurgence of new development of apartment properties. Alliance Residential has been one company that has multiple projects slated to break ground in the near future in Phoenix. One of their projects is blocks away from The Colonnade Apartment Homes that we own and will only help the area.

We are excited at Gelt to see the anticipated resurgence of the state of Arizona as one of the nations leading economies and we hope to ride this wave up as we continue to actively look for more apartment properties to acquire in Phoenix.

Gelt Attends the 50th Anniversary of the Los Angeles Musueum of the Holocaust

2011-11-06T22:20:00.000-08:00

Keith Wasserman and Los Angeles Museum of the Holocaust Benefactor Jona Goldrich

Keith Wasserman and philanthropist and businessman Stanley Black.

On November 6th, 2011, Keith Wasserman of Gelt Inc. and Gelena Skya, Senior Associate of Grubb & Ellis attended the 50th Anniversary of the Los Angeles Museum of the Holocaust.

Attending the event at the Beverly Wilshire Hotel were benefactors of the museum, businessmen, Holocaust survivors, and political leaders in the community such as Los Angeles Mayor Villaraigosa, Los Angeles City Controller Wendy Greuel, Los Angeles Mayoral Candidate Eric Garctti, and City Councilman Dennis Zine.

At Gelt we feel obligated to support charities and organizations that mean so much to ourselves and our investors. We believe in educating future generations about the Holocaust and support organizations that also foster these beliefs of educating and never forgetting these horrific events and crimes against human kind.

Gelt Attends The Guardian's of the Jewish Home for the Aging, "Men's Night Out" Featuring a Roast of Stanley Black

2011-11-05T00:21:00.000-07:00

Jona Goldrich, Keith Wasserman, and Charles Boxenbaum

Keith Wasserman and Damian Langere of Gelt Inc.

On November 4th, 2011, Gelt attended a benefit event hosted by the Guardians of the Jewish Home for the Aging. The Guardians is an organization that raises funds for to support the Jewish Home for the Aging.

For nearly 100 years, the Los Angeles Jewish Home for the Aging has been lifting spirits, restoring health, and making the richness of life an everyday event for our community’s precious elderly. Each year, nearly 1,000 frail seniors are fortunate enough to have a wonderful new place to call “Home.”

The night featured famous comedians such as Dom Irerra and Norm Crosby. The best part of the evening was the roast of Stanley Black, a Beverly Hills real estate magnate, humanitarian and philanthropist.

Stanley Black has over fifty years experience as a real estate developer and owner of income producing real estate. As co-founder of KB Management, he developed over sixty office and retail projects in the period from 1955 to 1975 consisting of over ten million square feet. The majority of these properties were sold in the ensuing ten years and the proceeds reinvested in numerous retail and industrial properties throughout the country. The current portfolio consists of investments in approximately fifteen million square feet of improvements. As President of KB Management, Stan supervised a staff of over a hundred people involved in the construction, operation and management of the KB portfolio.

Stanley has been honored by numerous civic organizations over the years, including the City of Hope, Cedars Sinai Medical Center, Boy Scouts of America and the National Conference of Christians and Jews. He is active in numerous charities throughout the Los Angeles area and a member of the World Business Council, Chief Executives Organization and former Young Presidents Organization member.

The event was a lot of fun and Gelt looks forward to becoming more involved with the Guardians in the future.

Jona Goldrich roasting Stanely Black

Donald Sterling roasting Stanley Black

Gelt Inc. Attends Moriah Breakfast Featuring Fred Leeds of Fred Leeds Property Management

2011-11-02T12:17:00.000-07:00

On November 2, 2011 Fred Leeds of Fred Leeds Property Management spoke at the monthly Moriah Society breakfast that the principals of Gelt attend. Mr. Leeds started acquiring residential properties while he was a college student at USC in order to afford to pay for his tuition. He began acquiring properties about thirty years ago and focuses on acquiring and managing primarily apartment buildings today.

In my opinion, Mr. Leeds is a fascinating businessman. He wakes up every morning at 4:45 am to go to the gym and then arrive at the office. He loves to work and do deals. His philosophy has been to make money on the buy. He often looks for properties to purchase where his cost of capital is at least 200 basis points below the initial acquisition cap rate. He says that this market is the best he has seen in thirty years to be an owner of apartment properties. Portfolio wide Mr. Leeds has only 1/2 of one percent vacancy and uncollected rent which is amazing in any economic climate.

Mr. Leeds has a 30 year history including over 500 successful property acquisitions, development and re-sales. He owns interest in and oversees a national property portfolio fast approaching $700,000,000 in value. One of several notable projects include the Wilshire Union Center, the largest land parcel privately owned on Wilshire Boulevard west of Downtown Los Angeles to the beach.

We enjoyed hearing Mr. Leeds speak and look forward to attending the next Moriah Society breakfast.

Gelt Inc Attends RealShare Apartments 2011

2011-11-01T18:12:00.000-07:00

At this year's RealShare Apartments 2011 event there was a dramatic increase in the attendance over last year. The atmosphere and speakers were much more bullish on the short term outlook for the multifamily real estate industry.

Speakers told stories of properties in core urban areas trading in the low four or even high three cap rate territory! The asset class of apartments is greatly outperforming all other asset classes currently. There has been a tremendous amount of cap rate compression in the last year.

The speakers spoke about the high levels of new construction and construction projects in the pipeline. Most speakers spoke about investing in primary cities such as Los Angeles, Boston, Washington D.C., and San Francisco. We at Gelt shy away from investing in these markets because of the tremendous amount of competition for deals. We feel that we are best suited being a larger player in a smaller market where we can also acquire properties that will produce larger cash on cash returns right off the bat.

At the event Damian Langere and Keith Wasserman had the privilege to network with some of the greatest minds in the multifamily real estate space. We hope one day to be a sponsor of this great event.

Keith Wasserman with Tom Shelton of Allison-Shelton Real Estate Services

Halloween at Gelt's Apartment Communities

2011-11-01T17:51:00.000-07:00

We always encourage our onsite property managers to get creative for holidays when it comes to decorating their properties and hosting events with their residents. We try to empower them to think creatively.

This Halloween we had coloring contests, costume contests, balcony decorating contests, and a host of other events for our residents. We try to foster a sense of community via our community Facebook pages, community events, and community facilities.

Take a look at some of the pictures below taken at Bridgemont Terrace, Vernon Vista, and The Colonnade.

Gelt Inc. Encourages Fun and Festivity

2011-10-18T22:46:00.000-07:00

At Gelt Inc. we believe in encouraging our tenants to have fun. We always decorate our properties brilliantly for all the major holidays throughout the year. We have parties at holiday time, contests, and other festivities involving our residents.

This Halloween at our properties we are having a contest on who can decorate their patio the best. Take a look at this one below from Villa Sienna!

Keith Wasserman of Gelt Inc. Attends BoxWorks Event in San Francisco

2011-10-07T14:35:00.000-07:00

Keith Wasserman of Gelt Inc. with Aaaron Levie of Box.net

On September 28th, 2011 Keith Wasserman of Gelt Inc. attended the first Annual BoxWorks party in San Francisco. The Founder and CEO of Box.net, Aaron Levie, is a friend of Keith's from college who began Box.net as a small venture in his dorm room at USC in 2005. Six years and $128 million of direct Venture Capital investment later, Box.net now has over 7 million active customers, over 250 employees, and over 77% of Fortune 500 companies are currently using Box.net's products and services.

According to it's website, Box is a "simple, scalable and affordable solution to manage documents, media and all your content online. Share files as a link. Sync files on the desktop. It’s file sharing, reinvented."

At Gelt Inc. we pride ourselves on staying up to date with technological improvements and we are constantly learning how we can best utilize the most cutting edge technologies to provide a better experience for our tenants, investors, and other stakeholders.

Keith Wasserman at the entrance of BoxWorks After Party

Third Eye Blind Performing Live at BoxWorks' After Party

Keith Enjoying Box's After Party

Gelt Inc. Attends Fashion Industry Guild Event at Beverly Wilshire Hotel

2011-10-07T13:01:00.000-07:00

On October 1st, 2011 Keith Wasserman of Gelt Inc. attended the Fashion Industry Guild's Annual Fundraiser benefiting the Cedars-Sinai Medical Center. The Fashion Industries Guild has established an Endowed Fellowship in Pediatric Neuromuscular Diseases.

This fellowship will directly advance the Department of Pediatrics partnership with the Cedars-Sinai Regenerative Medicine Institute in their joint quest to investigate and eventually develop new treatments protocols for a range of devastating neurological diseases affecting children, including but not limited to spinal muscular atrophy, cerebral palsy and epilepsy.

The turnout for the event was super. The Fashion Industry Guild was able to raise $900,000 for this great cause. The honorees of the evening were Lars Viklund, Kevin Talbot, and Jodi Sundberg of HeartSoul. Steve Wasserman's law firm Wasserman, Comden, Casselman, & Esensten purchased a table for the event. Steve and Diana Marieonhoff, and Steve and Judi Wies were very instrumental in putting together this successful event.

Many of Gelt's investors are associated with the garment industry in one way or another. Additionally, Wasserman, Comden, Casselman, & Esensten represents many successful garment manufacturer's, wholesalers, and retailers.

Keith Wasserman with Darren Wies at the Fashion Industry Guild Dinner

Gelt Inc. Supports Los Angeles City Councilman Dennis Zine In His Campaign For Los Angeles City Controller

2011-09-25T22:38:00.000-07:00

Keith Wasserman with Los Angeles City Councilman Dennis Zine

On September 20th, 2011 Keith Wasserman of Gelt Inc. attended a breakfast campaign fundraiser for Councilman Dennis Zine. Councilman Zine is running for the office of Los Angeles City Controller. He currently represents the 3rd District. The Third District extends to the western boundary of both Los Angeles City and Los Angeles County, bordering Ventura County. To the east, it ends at White Oak and Lindley Avenue. It includes the neighborhoods of Woodland Hills, Tarzana, Reseda, West Hills, Winnetka and Canoga Park. Gelt's headquarters are in Tarzana, CA.

Councilman Dennis Zine began his career as a police officer for the LAPD. He served twenty eight years on the force. He was first elected to public office in 1997 to represent Valley interests on the elected Charter Reform Commission where he served as Vice Chairman. After his election to the City Council, he has expanded his government service role as the President of the Independent Cities Association (ICA), as the City's representative with the National League of Cities serving as a member of the Board of Directors and the Chair of the National Immigration Task Force, and as a member of the League of California Cities Board of Directors. Councilman Zine is also a member of the Los Angeles County Judicial Procedures Commission. He is one of two Republican Party members of the City Council.

Gelt Inc. Attends Artfest 2011, A Benefit Event for Boys & Girls Clubs of Kern County

2011-09-25T22:07:00.000-07:00

Keith Wasserman, Founder of Gelt Inc. with 8 year old Arianna and her work of art that Keith won at the silent auction at Artfest 2011 in Bakersfield

On Saturday September 24th, 2011 Keith Wasserman, Founder of Gelt Inc. and Gelena Skya, Director of Charles Dunn attended the annual Artfest event at the Moorea Banquet Centre in Bakersfield, CA. The event was a fundraiser for the Boys and Girls Clubs of Kern County.
The mission of Boys and Girls Clubs is to "enable all young people, especially those who need us most, to realize their full potential, as productive, caring, responsible citizens."

Gelt Inc. prides itself on giving back to the local communities where it invests its time and resources. Keith Wasserman and Damian Langere founded Gelt Inc. in December of 2008 with their first acquisition of a fourplex on the East side of Bakersfield. They continued to acquire fourplex properties all over East Bakersfield, many within walking distance to the Boys and Girls Club on Niles Street. Their story went full circle at the Artfest where Keith won at silent auction, a brilliant painting depicting the colorful apartments where an 8 year old girl Arianna lives on the East side of Bakersfield. Arianna attends the after school programs at the Boys and Girls Club on Niles as well.

The evening was a merry event full of delectable food, exciting live entertainment, and a thrilling live auction. The event was a great success and Gelt is very proud to be apart of all the great things that Boys and Girls Clubs of Kern County does for its local communities.

Keith Wasserman, Founder of Gelt Inc. with Gelena Skya, Senior Associate at Grubb & Ellis

Gelt Inc. Attends Dedication of Chabad Center For Jewish Life in Agoura Hills, CA

2011-09-19T11:56:00.001-07:00

On Sunday September 18th, 2011 Keith Wasserman of Gelt Inc. attended the dedication of the Chabad Center for Jewish Life in Agoura Hills. The occasion was very joyous with hundreds of attendees. It is remarkable what Rabbi Bryski has accomplished for the Jewish community of the Conejo Valley. In the audience were men, women children, Rabbis, congressmen, mayors of nearby cities, and members of Chabad. Gelt and its principals proudly support Chabad and the great things Chabad does for its community.

Keith Wasserman of Gelt Inc. attends the dedication of the new Chabad Center for Jewish Life in Agoura Hills, CA

Keith Wasserman all through college was involved with a Chabad organization called Friendship Cirlce. Friendship Circle aims to provide children and teenagers with special needs and their families with many of the social and recreational opportunities that are currently available to the general community. These experiences are essential building blocks for an individual to acquire confidence and self esteem and to ultimately lead a productive adult lifestyle. For four years Keith came over to a young boy's home to spend quality time playing together and learning from each other. Keith formed a special bond with his friend and is friends with him and his family to this day.

Other programs Chabad has are "The Sunshine Club" which is is a unique volunteer program under the auspices of Chabad of the Conejo designed to bring cheer and companionship into the lives of seniors all throughout the Conejo Valley. It is a program where volunteers spend time with seniors in assisted living facilites, nursing homes, etc. They provide companionship and do activities with their senior such as reading, studying, letter-writing, crafting or game-playing, or venturing out for neighborhood strolls. These are just two of the amazing programs that Chabad of the Conejo Valley does in addition to having prayer services, lecture series, and other Jewish cultural events.

Check Out Our Latest Ad in the Los Angeles Jewish Journal

2011-09-16T13:04:00.001-07:00

We recently began advertising in the Los Angeles Jewish Journal. We want to share with everyone in the local community what Gelt Inc. is all about and share with you announcements on our latest acquisitions and recent success. Now is a great time to acquire strong cash flowing multifamily properties. Interest rates remain at historic lows, property values remain well off their highs, and the underlying fundamentals for rising occupancies and strong rental growth remain. Our partnerships have acquired close to 1,000 apartment units in the last two years and are on the hunt for more properties that fit our investment criteria.

Real estate is a great investment tool that preserves investor capital and provides healthy returns for investors. At Gelt Inc. we are all about providing high returns of to our investors and doing good in the communities we invest in. Visit our Charity Page to see all of the organizations that Gelt supports.

Gelt Inc. Attends 8th Annual Larger Than Life Charity Event at Hilton Universal City Hotel

2011-09-16T12:05:00.001-07:00

On Thursday September 15th, 2011 Keith Wasserman and Gelena Skya attended the 8th Annual Larger Than Life Charity Event at the Universal City Hilton Hotel. Larger Than Life is an organization that strives to improve the quality of the life of children with cancer, regardless of religion, race, gender, or ethnicity. The Charity Event was a fundraiser put on by the Los Angeles Chapter of the organization to support, fund, and organize the annual West Coast Dream Trip for children stricken with cancer. The children come from Israel to Los Angeles for two weeks of pure fun, away from hospitals and treatments.

Larger Than Life also supports Children's Hospital LA and City of Hope Children throughout the year in numerous activities that are listed on their website.

The event that we went to was very touching. At Gelt Inc. we believe in supporting these kinds of charities. Please visit our Charity Web Page to see other organizations that we support.

Keith Wasserman of Gelt Inc. & Gelena Skya of Grubb & Ellis enjoy the evening at the 8th Annual Larger Than Life Charity Event

Gelt Inc. Introduces Colonnade Gardens

2011-09-15T16:40:00.000-07:00

Watch our latest video previewing our 415 unit Colonnade Gardens Apartment Homes in Phoenix, Arizona. We have been making major progress re-branding the property as a hip exciting "Hide Away in the Middle of it All."

Gelt Inc. Plays Golf in the 2011 CASA Charity Event in Bakersfield, CA

2011-09-15T16:13:00.000-07:00

One of the local Bakersfield charities that we support is called CASA For Children. CASA stands for "Court Appointed Special Advocates." CASA of Kern County for over seventeen years has sought to protect the best interest of abused and neglected children of their county. Over this period of time, they have trained 785 volunteers who have reached into the lives of over 1,984 abused and neglected children. CASA is an excellent organization that we strongly suggest you support in your local community.

Gelt Inc.'s Keith Wasserman and Damian Langere with Chicago Title Sales Executive Joe Muller at the 2011 Seven Oaks Country Club CASA Kids Charity Golf Tournament

Gelt Inc. Attends Governor Rick Perry's Presidential Campaign in Los Angeles and Bakersfield, CA

2011-09-15T15:31:00.000-07:00

At Gelt Inc. we believe in supporting local charities and organizations that do good in their communities. We also strongly support politicians who share our same beliefs and principles.

Governor Rick Perry was a gentleman that Gelt Principal Adrian Goldstein met over a year ago on a trip to Israel with other politicians, diplomats, and high level businesspeople. Governor Rick Perry is a long time friend of Israel's. He has been to Israel more than any other candidate in the field and says he loves the country. Governor Perry's trip to Israel was about finding new opportunities to create more jobs in his home state of Texas. Texas has managed to weather the recession comparatively well, and the Federal Reserve Bank of Dallas has reported that half of all US jobs created from June 2009 to August 2011 were in Texas. Governor Perry has repeatedly stated, “If you’re our friend, we are with you. I’m talking about Israel. Come Hell or high water, we will be standing with you!"

Not only is Governor Perry a strong advocate of Israel but he also is a strong believer in the future success of our country. One of his main campaign pushes has been the creation of new jobs. With unemployment at uncomfortably high levels, this country needs someone that has the experience to create new jobs. The more jobs people have the more potential renters we have for the nation's apartment stock.

Property Management is a People Business

2011-09-15T14:50:00.000-07:00

At Gelt Inc. we are only as good as the people that run the day to day operations on our properties. We pride ourselves on utilizing the services of top notch property managers, leasing agents, maintenance crew, bookkeepers, contractors, and other personnel. We are determined to establish great relationships with everyone involved in making a property run effectively and efficiently. Below are some pictures of Gelt principals Damian Langere and Keith Wasserman spending quality time out of the office with our property manager Rick of Venetian Apartments. It is important to have a strong bond with the people on the ground who will make or break an apartment property's operations and ultimate economic performance. The better we treat our staff and empower them, the more they enjoy their job and get the desired outcomes we expect.

Gelt Principals Keith Wasserman and Damian Langere with Rick Eckludn and his wife Danielle enjoying themselves at The Bakersfield Petroleum Club

Gelt Founder Keith Wasserman with Rick Ecklund, and his wife Danielle having a great evening at The Padre Hotel

Gelt Principal Evan Rock with Pam Shelton, Stacey Searl, and Tom Shelton of Allison-Shelton Real Estate Services in Phoenix, Arizona enjoying an Arizona Diamondbacks baseball game

Gelt Principal Damian Langere with Allison Shelton staff

Gelt Inc. Supports National Breast Cancer Awareness Month

2011-09-04T19:42:00.000-07:00

This October Gelt Inc. will be supporting the Cure Breast Cancer Foundation. For every lease signed in the month of October on all of our properties we will be donating $10 to this foundation. Last year was the first year that this organization began an apartment owner initiative, and they successfully raised over $25,000. At Gelt Inc. we believe in supporting the communities that our properties are in and supporting charitable organizations that mean a lot to us. We have created a Charity page on our website to show a number of the charities we support.

The Importance of Setting Up A Model Unit

2011-08-22T12:52:00.000-07:00

At Gelt Inc. we pride ourselves on setting up good looking model units. The model unit serves the purpose to help sell the apartment to a prospective renters. Walking into a fully furnished apartment home that is well lit, has lively music playing, and that smells good is extremely important in a prospective tenant's decision making on where they want to live. Contrast this to walking into a unit that is completely vacant and that has a bad odor.

A model unit helps convey the message to our residents that we want them to feel at home when renting from us and that we care. Take a look below at some of the model units we have created at some of our properties.

Colonnade Gardens Model Unit

Vernon Vista Model Unit

Bridgemont Terrace Model Unit

Venetian Model Unit

Gelt Inc. Gets Creative To Rent Garages

2011-08-11T22:25:00.000-07:00

At our Bridgemont Terrace property in Bakersfield, California, we have been struggling to rent a significant amount of our garages. When we have issues like this we always put our heads together and try to think outside of the box. We have installed on two garages creative graphics that illustrate to our tenants the types of uses the garages have. We are offering the garages that are conveniently located on the property for much less than any public storage around. With a little ingenuity and good marketing to existing and prospective tenants, we believe we will be able to fill most of the garages in no time.

Zip Car

2011-08-04T14:17:00.001-07:00

At Gelt Inc. We're always looking to add amenities to our apartment complexes. One of the services that is currently on our radar is Zipcar, a unique car sharing program. For properties like our Colonnade Gardens, which is conveniently located in the heart of the Cammelback Corridor office and retail district, tenants may not need the added of expense of owning a car. Tenants who appreciate a minimalistic lifestyle may appreciate the cost stavings of Zipcar and also smaller studio style apartments.

The beauty of the Zipcar community is that they’re all different shapes, sizes, and colors. Members use Zipcar as an alternative to the costs and hassles of owning or renting a car. It's also more flexible than public transportation. A Zip car can be rented from anywhere from an hour up to a day. People can sign up for an online account and pay a one-time $25 fee, plus, for Zipcar in Phoenix, a $50 a year membership fee. Hourly weekday rates start at $8, and daily rates at $66. When members are ready to use a car, they log in and reserve it. Cars are available from one minute to a year in advance, but most people reserve a car within 24 hours. All you have to do is walk up to a car with your membership card, the car will unlock for you and only you because of a reservation that must be made in advance, and drive to where you need to go and simply leave it there and walk away. This service is so helpful for students, employees, or for anyone who needs an extra car for the day. In colleges, it doesn’t make sense in most cases to bring your car from home, so this service makes a lot of sense if a car at college is still a necessity. Arizona State University has an agreement with Zipcar to park a fleet at the university's campuses in Tempe, Mesa, Glendale and downtown Phoenix. Anyone can register for cars parked at ASU. An initial Valley-wide fleet of 10 vehicles has grown to 18 over the past three years, said Theresa Fletcher, who manages ASU's transit and parking division. The biggest reason this service is such a hit is because of the money you will be saving in not having to buy a car!

CNBC Report: Cities Where Renting Is on the Rise: "Bakersfield #4 Nationwide"

2011-07-30T08:38:00.000-07:00

Bakersfield, CA

Rise in renters: +10%

Bakersfield statistics:
Median income: $52,677
Unemployment: 11.5%
Median house or condo value: $196,300
Median rent: $919

Houses are being built in Bakersfield, and perhaps they’ll even be owned by their occupants: Kern County had the most housing starts in 2010 of the Central Valley markets, reported Bakersfield Economic and Community Development. In addition, the U.S. Department of Housing and Urban Development forecasts: “Increasing population and a slowdown in the shift to homeownership are expected to support the demand for 2,400 new market-rate rental units during the next 3 years.”

Gelt Acquires 128 Unit, Class "A" Apartment Community in Bakersfield, CA For $11.65 Million

2011-07-28T23:20:00.000-07:00

Click HERE to view the full Globe Street Article

On July 28, 2011, Tarzana, California based Gelt acquired its 19th multifamily property since its inception in December of 2008. This particular property was an $11.65 million 128 unit Class "A" apartment community located in Bakersfield, CA. The seller was an entity of the Bascom Group. Mark Bonas, Vice President of the Bakersfield CB Richard Ellis office represented both the buyer and seller in this transaction. Mr. Bonas also represented both buyer and seller in May, 2010 when Gelt acquired Bridgemont Terrace Apartments, a 70 unit Bakersfield multifamily asset also owned by the Bascom Group.

According to Gelt founder Keith Wasserman, this asset was on its radar for over a year and half.

"We have been actively trying to acquire Villa Sienna from Bascom for quite some time now. This high quality recently renovated asset fits perfectly into our Bakersfield portfolio. We love the location of the property, the quality of the asset, and believe it has tremendous potential as a long term hold for us," said Mr. Wasserman.

According to Gelt co-founder Damian Langere, the property was in great condition and the transition should run smoothly.

"We acquired a property that was completely renovated in 2007 when Bascom spent over $1,000,0000 renovating the asset and upgrading it to the A quality project that it is. The property has great bones and minimum deferred maintenance. Bascom has done an excellent job running the property as evidenced by its 100% occupancy and waiting list of prospective tenants," mentioned Mr. Langere.

Evan Rock of Gelt fell in love with the asset the moment he first saw it.

"This is the type of project that we are targeting. A high quality living environment with lots of amenities and affordable rents. The property has a tennis court, two pools, beautiful waterways running throughout, laundry hookups and fireplaces in each unit, a gym, and an excellent location to top it off. If I lived in Bakersfield, I would love the opportunity to live at Villa Sienna."

Adrian Goldstein, a Partner in Gelt, remains very bullish on Bakersfield multifamily.

"Cap rates are continuing to compress and values are continuing to rise on a national level. Bakersfield is doing tremendously well from its concentration on oil and agricultural businesses, which are both doing phenomenally. Additionally, Bakersfield has not seen any notable apartment development in over a decade. The population has grown over 40% during this time period with little affordable housing stock. I believe rental growth will be extremely strong for the next three to five years. We were able to secure a very attractive fixed rate Fannie Mae loan through Wells Fargo. We locked rate at 5.20% and will enjoy positive arbitrage day one and strong cash flow."

Gelt retained the services of Apartment Management Consultants (AMC) as its third party property management for Villa Sienna. Clay Akiwenzie of Wells Fargo arranged the loan for Gelt.

Gelt Inc. Makes Quarterly Distributions

2011-07-28T23:08:00.000-07:00

Every quarter we distribute funds to our investors for our properties derived from the properties cash flows. This is getting to be a serious job now that we have over fifty investors! Our investor pool is growing fast through word of mouth. In addition to the distributions we send our investors quarterly newsletters, copies of collateral material used in marketing efforts for the properties, and pertinent articles relating to the multifamily business on a national level and in the city where their asset is. At the end of each fiscal year we send a profit/loss statement, K1's, and a balance sheet all prepared by our CPA.

We are now closing in on 1,000 units under ownership with our acquisition of Villa Sienna which closed today, July 28th, 2011. Villa Sienna is a Class "A" apartment community in Bakersfield, CA. Since we began acquiring multifamily assets in December of 2008, the market has been on a tear with cap rates decreasing and values increasing nationwide for apartments. Rents have been increasing, vacancies have been decreasing, and concessions have been burning off. Additionally, financing remains at historic lows. We believe that now is a great time to acquire well located cash flowing apartment communities in our target markets.

Short Term Apartment Rentals

2011-07-27T15:33:00.001-07:00

AirBnB.com is a three year old website that matches people who want a room for a night or two or three and so on, with home or apartment owners that are willing to rent short term. In theory, AirBnB is a great alternative to the stodgy and sometimes just plain icky hotel rooms that one encounters when traveling on a budget. Airbnb goes one further than most other holiday apartment bookers by adding an element of social media to the site, meaning that proprietors are encouraged to be accessible to their tenants, allowing for like-minded people to connect through housing. This website has opened up a new micro-market that has the potential to provide more rental days for down units. This website attracts renters, shows the homes or apartment units, and advertises availability all on one website. Apartment managers can post continuously unrented units helping to increase the annual bottom line and asset value. AirBnB has given the industry ways to uncover hidden demand which allows opportunistic pricing and increase revenue without increasing asset investment. Being called the future of realty, AirBnB is the first to put its foot in the door for these new types of micro-markets that are changing real estate all together.

Gelt Inc. is in the process of furnishing several units are each of our properties to be listen on AirBnB.com

Real Estate Lingo

2011-07-27T12:01:00.001-07:00

In real estate, there are some phrases that may sound foreign to a beginner buyer. So we have compiled a list of phrases that every buyer should learn from the best real estate websites:

"Out with the old, in with the new"
Get rid of the old decor. Take down the old, crummy wallpaper, paint walls with fresh, new colors. Get rid of all the years of clutter. Throw out old furniture, move furniture around to make rooms more welcoming. If you can afford to, hire a home stager to bring in additional furniture and accessories. If not, turn to your real estate agent for advice and assistance.

"If it ain't broke, don't fix it"
But if it is broken, DO fix it. If kitchen or bath faucets are rusty and old, replace or polish. Replace broken or cracked windows. Fix or replace any items that would look like they need to be fixed to a buyer. This is an area where your real estate agent can give you valuable advice on what to fix, and what can be left alone.

"A drop in the bucket"
What you spend to fix up a property can be small compared to what you will lose in value if you decide not to. Also, this phrase may refer to each time a tenant pays rent.

"A job worth doing is worth doing well"
If you are going to spend the money to make a capital improvement to the property, it's better to do it right the first time.

"A place for everything and everything in its place"
There’s a place on your property for everything that will make it look nicer, even if that place is in the trash can outside.

"Clean as a whistle"
Each rental unit should be clean before it becomes "Rent-Ready". Of course all damage should be repaired, but also everything should be thoroughly cleaned, even the inside of the oven including, baseboards, and behind the toilet. Air fresheners can be helpful with odor infested rooms. Have a room looking and smelling clean is a top priority.

"Pretty as a picture”
Make sure the photos of your property are eye catching and pleasing to the buyer. This means no cars in front when the exterior photos are taken, rooms are light and bright etc. Many times the photos are what attract potential tenants.

"A bird in the hand is worth two in the bush”
Remember this one when you get the first offer, and it's not the sales price you had hoped for. Most properties are priced higher than what the buyer is willing to buy it for, so remember, a deal may not be such a bad thing.

Rainmaker LRO

2011-07-22T10:16:00.001-07:00

At Gelt Inc. we are all about maximizing revenue. Over the last several weeks we have been analyzing various software options that help our management companies keep optimal rental rates while minimizing vacancy loss and maximizing revenue. Rainmaker LRO™ (Lease Rent Options) seems to be the most desirable solution. The software enables multifamily housing operators, large and small, to maximize revenue from apartment leases in all market conditions.

Rainmaker LRO™ uses advanced mathematical modeling and statistical methods to accurately forecast availability and demand at the unit type level, resulting in optimal pricing for both new leases and renewals. For an accurate assessment of pricing tolerance in a given market, demand must be considered using all customer visits, even if a unit is not leased. This provides a forecast of unconstrained demand, which is an estimate of your property’s true demand while accounting for historical price and availability constraints. During implementation, all available data is extracted from the Property Management System, providing LRO with historical data for each community. The extraction process continues on a daily basis allowing LRO to gather transactional data in the form of traffic, leases, notices, move-ins, move-outs, etc., entered on-site each day.

"LRO has become synonymous with Equity Residential’s pricing strategy and the overall daily execution of our strategy. With Rainmaker holding the reins for LRO’s future, we are confident that the mathematics behind LRO will always stay at the forefront and serve as the foundation of our revenue management platform. With Rainmaker, Equity gets an experienced revenue management company whose sole focus is only revenue management." -Michael Manelis (Senior Vice President Property Operations, Equity Residential)

CLICK HERE to read more convincing testimonials.

Study: Bakersfield among top markets for rental home investors

2011-07-14T22:39:00.000-07:00

On July 13th, 2011, Keith Wasserman of Gelt Inc. was quoted in the local Bakerfield Californian newspaper regarding Bakersfield's strong rental housing market. The article titled "Study: Bakersfield among top markets for rental home investors" interviews local property owners and management companies to reflect upon their business in the rental market and why the market is so on fire.

Gelt Inc. Works at Haibtat for Humanity Site in Pacoima, CA

2011-06-26T12:31:00.000-07:00

On January 25th, 2011, Gelt Inc. principals Keith Wasserman, Damian Langere, and Evan Rock got down and dirty and worked on building homes for the San Fernando / Santa Clarita Valleys Division of Habitat for Humanity in Pacoima. This experience was truly rewarding as we worked hard to grade the residents' back yards using tools such as picks, shovels, wheelbarrows, and levelers. We also hung doors, and door frames, painted the exterior and interiors of the houses, and cut and installed base board around the rooms. There was a large turnout of volunteers that helped us and as a team we were able to work together and help create the dreams of home ownership for many people. The future residents of these homes actually have to work a minimum of 500 hours just to be able to qualify for purchasing the home. The home is then sold to them at a subsidies level.

Habitat for Humanity is a nonprofit, ecumenical Christian ministry founded on the conviction that every man, woman and child should have a decent, safe and affordable place to live. They build with people in need regardless of race or religion. Habitat for Humanity welcome volunteers and supporters from all backgrounds.

We are looking forward to working again with Habitat for Humanity and the myriad of other organizations that we support with "Gelt Giving."

Gelt Inc. Gives Back to the Community

2011-06-26T12:27:00.000-07:00

Gelt, is the Yiddish word for money. During Hanukkah, the Jewish festival to commemorate the rededication of the Temple in Jerusalem at the time of the Maccabean Revolt of the 2nd century BCE, parents and grandparents give children “Hanukkah Gelt”, either coins or chocolate money wrapped in silver or gold foil.

We chose the word Gelt for our company name because it symbolizes what is good about money. Our philosophy is that through hard work and dedication, skill and persistence we will be successful in our endeavors and a benefit of success is the monetary rewards that it brings with it.

We seek to earn healthy profits for our investors and at the same time enrich ourselves. The benefit though is that with our success and with Gelt, we are able to support our community and worthy causes. This is a passion for us and often this is a passion for our investors too. We are happy to support a growing array of worthy causes and there is certainly no shortage of them. For more information about the causes that we contribute to, or to suggest other causes for our consideration please click on the link below.

Gelt Giving

Gelt Inc. Attends L.A. Dealmakers Event at Wokcano in Santa Monica

2011-06-16T15:50:00.000-07:00

On Wednesday, June 15th 2011, Keith Wasserman and Damian Langere of Gelt Inc. attended the L.A. Dealmakers event at Wokcano in Santa Monica.

At the event we met up with Paras Bhakta, the co-founder of Stuho, Inc. Stuho is a leading cutting edge property management company that specializes in student housing surrounding the University of Southern California. Paras has been involved with ground up development of student housing and the rehab of existing buildings. He currently has over 900 beds under management. Stuho and Paras are taking the USC student housing market by storm and growing at a blistering pace. Stuho prides itself on providing superior customer service to their residents and property owners that they represent. They bend over backwards to ensure their residents are happy and treated well.

Paras always listens to his residents and team members, and actually goes as far as utilizing their input when designing and building his brilliant student housing projects. One of the properties called the G6 recently won a prestigious industry award for its great design and functionality. If going to USC, we highly recommend living in a Stuho managed property.

At the event we also met up with fellow real estate professional Matthew Isken. Mr. Isken currently is the Senior Acquisitions Analyst at The Lighthouse Group which is an investor in apartment complexes all over the United States. Matthew Isken is extremely knowledgeable about multiple real estate markets. Matthew Isken will be attending the University of Southern California's Marshall School of Business Graduate School to achieve his MBA. Perhaps he will live in a Stuho apartment complex?

Allison-Shelton Manages Gelt's First Property Acquired in Arizona

2011-06-13T20:57:00.000-07:00

Gelt Inc. has retained the services of Allison-Shelton Real Estate Services to manage the 415 unit Colonnade Gardens in Phoenix, Arizona. The principals of Allison-Shelton are Thomas K. Shelton, Pamela Shelton, and Vicki Allison.

Allison-Shelton is a first class property management company that we hope to build a long lasting relationship with. Gelt is actively pursuing more apartment acquisitions in Phoenix, Arizona.

Keith Wasserman and Gelena Skya Attend The Israel Conference

2011-06-13T15:12:00.000-07:00

On June 2nd, 2011, Keith Wasserman of Gelt Inc. and Gelena Skya of Grubb & Ellis attended The Israel Conference. This event was a full day from 7:30 AM to 9:00 pm. The event was headlined by Yossi Vardi, the Chairman of International Technologies, Randy Ditzler, a Partner at Sequoia Capital, David Rezner, the Former Chairman and CEO of Universal Music Publishing Group, and a myriad of other industry leaders.

The event consisted of speaker panels discussing the following issues:

1. Mobile Connections - What is the Future for Your Fingers
2. Creative Consumer Products - High End Consumer Products
3. From Seeding Ideas to Selling Shares - From Concept to Going Public
4. Business in Israel
5. The Name of the Game is Digital News

This is just a partial list of some of the panels. The event did a great job showing the participants all of the great technologies that are coming out of Israel. Israel is ripe with brand new technologies that are cutting edge. Some of the companies that presented were Powermat, Sodastream, Ahava, and DudaMobile. For being such a small country, Israel is a powerhouse when it comes to technological innovations.

Gelt Inc. Meets Richard Ziman

2011-06-07T09:32:00.001-07:00

On Monday, June 7th, 2011 the Gelt Inc. team met with Richard Ziman, founding Chairman and CEO of Arden Realty, Inc., the largest owner of commercial office real estate in Southern California. Mr. Ziman has had two amazing runs in real esate during his career. In 1989, he sold off his portfolio of Southern California real estate just before the market crash. Between just 1989 and 1990, he sold 5,000,000 square feet of property in 19 months.

Mr. Ziman's timing was impeccible. Right after the recession in the early 1990's Mr. Ziman entered the business again, buying as much property as he could get his hands on from the RTC and other banks that were unloading proeprties. Our partner Adrian Goldstein actually sold Mr. Ziman the first office building that Arden bought.

Mr. Ziman then sold his company Arden in 2006 at the top of the market to a unit of General Electric Co. for $4.8 billion. He spent 15 years building Arden, which had a 227-building portfolio spanning 20 million square feet.

Mr. Ziman founded the Ziman Center for Real Estate at UCLA. He is a philanthropic, hard working individual that we all look up to. We expect big things to happen at AVP Advisors, Richard Ziman's newest business venture.

John Cushman III - Moriah Society Breakfast

2011-06-01T10:18:00.001-07:00

Gelt Inc. had the pleasure of hearing John C. Cushman, III speak at the June Moriah Society Breakfast. He spoke at length of his rise to success and his current assessment of the foreign and domestic real estate market.

Mr. Cushman is the chairman of Cushman & Wakefield, a global real estate services firm which was founded by his grandfather (John Clydesdale Cushman) and his great uncle (Bernard Wakefield).

Cushman joined Cushman & Wakefield Inc. in New York, NY in 1963. He opened an office in Los Angeles in 1967. He and his twin brother Louis B. Cushman then founded Cushman Realty Corporation on April 1, 1978. Cushman Realty Corporation merged with Cushman & Wakefield in 2001 when Cushman became chairman of Cushman & Wakefield, Inc. Cushman & Wakefield has completed many of the largest office leasing and sales transactions in the U.S.

Cushman has served as National president of the Boy Scouts of America, a commissioner of the California Commission for Jobs and Economic Growth, a board member of the California Region I Homeland Security Advisory Council, a member of the Los Angeles World Affairs Council, the Los Angeles Sports Council, and a trustee of the Urban Land Institute. On September 19, 2007, Mr. Cushman received The Hundred Year Association of New York's Gold Medal "in recognition of outstanding contributions to the City of New York."

Cushman is a Director and Chairman of Cushman Winery Corporation, owner of Zaca Mesa Winery. Cushman also serves on the boards of Callaway Golf Company, Culinary Holdings, Inc., Cushman & Wakefield, Inc., D.A. Cushman Realty Corporation, Inglewood Park Cemetery, La Quinta Corporation, La Quinta Properties, Inc., and the National Park Foundation.

CBRE - Multifamily Trends 5/25/2011

2011-05-26T12:21:00.001-07:00

Evan Rock of Gelt Inc. attended the Multifamily Trends 2011 CB Richard Ellis event hosted by Laurie Lustig-Bower. This event was a panel discussion moderated by Christopher Luderman of CBRE. Leading industry panelists included; Bob Hart, President and CEO of Kennedy Wilson, Glenn A. Sonnenberg, President of Latitude Management Real Estate Advisors, Bill Lindsay, Partner of PCCP, and David Sears, Managing Director of JP Morgan.

Most all of the panelists agreed that they are net buyers in the current multifamily market and have little regret over the deals they have purchased within the last year. Core CAP rates are pushing south of 5%, which is fueled by the low cost of financing. They were bullish on interest rates staying low in the short term, but recommended seeking long term fixed debt instead of adjustable rate debt in order to take advantage of the historic low rates and mitigate risk.

The fear of stagflation seemed prevalent and all panelists agreed that the macro-economic environment was very shaky due to weak job market. One panelist noted that the "new" employment model favored workers being more mobile, helping to justify renting of high-end apartments. The un-employed are forced to look far and wide in search of jobs, which is helping to fuel low-end apartment demand. Core assets (Prime multifamily properties in a major market) capture a certain segment of the population and were noted to be an almost different asset type than their tertiary and subclass counterparts.

Rents for class A apartments are viewed as stable or on the rise, helping to fuel new activity in development. It was noted, however, that entitlement for these projects is very difficult mainly due to a push-back from both homeowners and municipalities. Apartments don't capture nearly as much tax revenue as single family residences.

Top ten buyers of 2010 in order of dollar volume:

Equity Residential

JP Morgan

Behringer Harvard

Essex Property Trust

Area Property Partners

CB Richard Ellis Investors

Standard Portfolios LLC

UDR, Inc

Invesco Real Estate

Top ten sellers of 2010 in order of dollar volume:

Prudential RE Investors

Bank of America

Equity Residential

BlackRock

Lehman Brothers

Cornerstone RE Advisers

Macklowe Properties

Bethany Group

Fairfield Residential

Angelo Gordon

Gelt Inc. Attends "Once in 100 Years" Celebrating the Jewish Federation of Greater Los Angeles

2011-05-26T12:14:00.001-07:00

On May 25, 2011, Keith Wasserman of Gelt Inc. and Gelena Skya, Senior Associate at Grubb & Ellis attended "A Centennial Celebration" honoring Stanley P. Gold (President and CEO of Shamrock Holdings), Bram Goldsmith (Chairman of the Board of City National Bank), and Nina Tassler (President of CBS Entertainment) at the Barker Hangar at the Santa Monica Airport. The event was a collaboration of the Real Estate & Construction Division, the Health Professionals Division, Finance & Investment Division, and the Legal Division of the Jewish Federation.

The event was a grand celebration honoring three individuals that have done so much to help the Jewish Federation of Los Angeles. The Jewish Federation's mission statement is that it is "an organization that leads the community and leverages its' resources to assure the continuity of the Jewish people, support a secure State of Israel, care for Jews in need here and abroad, and mobilize on issues of concern to the local community, all with our local, national, and international partners."

The event was a great success with a large turnout of thousands of distinguished guests. The night was concluded with a grand performance by the music group Train. We at Gelt Inc. look forward to getting more involved with the Jewish Federation and all of the great community service the group does.

Colonnade Gardens Pool Party Is A Success

2011-05-20T11:32:00.000-07:00

It's getting hot in Phoenix, Arizona. When the temperature rises, it's time for a pool party! We recently put on a pool party for our tenants at Colonnade Gardens, our newest acquisition in Phoenix. We had a huge turnout. Everyone was very excited about the new ownership. We provided pizza, drinks, and even free massages!

At Gelt Inc. we understand the importance of building a sense of community at each of our properties, no matter what the size. We always arrange different activities such as pool parties, ice cream socials, pizza parties, coloring contests, barbecues, holiday parties, birthday parties, and much more.

We have also created a Facebook page for each of our properties to better enable the tenants to communicate with themselves and others at their property. Also, it helps the on site managers to keep tenants informed of different events and activities taking place. Facebook and Twitter are great social media tools that we use to help keep tenant retention strong and prospect for new tenants.

Gelt Gets Published in Phoenix Business Journal

2011-05-06T11:53:00.000-07:00

Gelt buys Ferntree, Colonnade Gardens for $16M

Phoenix Business Journal - by Vicoria Pelham
Date: Wednesday, May 4, 2011, 2:41pm MST - Last Modified: Thursday, May 5, 2011, 9:21am MST

Gelt Inc. has purchased the Ferntree and Colonnade Gardens apartment complexes in Phoenix for $16 million, the company’s founder said.

The properties, which will be combined under the name Colonnade Gardens, went on the market from owners Aimco REIT in April 2010, said founder Keith Wasserman. Gelt, based in Tarzana, Calif., placed an offer in December.

While the acquisition is their first in Phoenix, Gelt had been looking at the city for the past two years, Wasserman said. The company delayed a purchase, waiting on conditions such as lowering rents, rising vacancies and a lagging economy.

Wasserman said the sale’s timing was perfect, with low prices, an improving economy and migration to Phoenix.

“We’re very bullish on the city,” he said. “We feel that its worst times are behind and we feel it’s a dynamic economy.”

Gelt is looking to purchase 2,000 to 3,000 apartment units in the Phoenix market. The multifamily Colonnade Gardens, on Camelback and 20th Street, is comprised of 415 units.

The sale is indicative of an improving market, said Brad Cooke, vice president of Colliers International’s multifamily advisory group.

“By having new buyers keep coming into this market, that’s going to help stabilize the market,” Cooke said, adding that the deal was with a “true” seller.

“We’re seeing the emergence of true sellers, not just banks controlling the market anymore,” he said. “Our market has bottomed, and we are coming out of it.”

The volume of multifamily unit sales has increased since the slowest period in 2008. There was a small increase in the end of 2009 and further growth in the past year, with 23 sales of over 100 units in 2011 so far.

Single family units were overbuilt, but there was not much multifamily building in the past cycle, Cooke said. This led to positive absorption and rent growth in the overall market in the past quarter.

Buyers in Phoenix now are looking to buy at bottom-level prices and push rents on these properties, Cooke said.

The city’s affordability is drawing people back in, Wasserman said.

Most multifamily unit sales in the Phoenix area are getting multiple offers, Cooke said. There were multiple offers on the Colonnade Gardens property.

“People are going to need places to live, and we’re looking to accumulate more units there,” Wasserman said, adding that Gelt had not identified its next purchase in Phoenix but was scouting.

Jim Crews of Cushman & Wakefield brokered the Colonnade Gardens deal that closed on Friday.

Read more: Gelt buys Ferntree, Colonnade Gardens for $16M | Phoenix Business Journal

Gelt Gets Published in Globe Street

2011-05-02T21:40:00.000-07:00

EXCLUSIVE
Gelt Enters Phoenix with $16M MF Buy

PHOENIX-Gelt Inc. has made its first acquisition here, paying $16 million for the 415-unit Ferntree & Colonnade Gardens. The deal marks the Tarzana, CA-based firm’s largest transaction since its inception in 2008.

“We plan on purchasing similar size and quality properties in Phoenix,” says Keith Wasserman, president of Gelt Inc. “We are looking to build a portfolio of 2,000 to 3,000 units in Phoenix.”

Gelt bought the class C apartment property, which is located at 5023 North 18th St. and 1930 East Camelback Rd., from AIMCO. The company plans to rename the property Colonnade Gardens, Wasserman says.

"We have been following the local multifamily market for the past two years and feel that now is the time to take the plunge and purchase our first asset,” Wasserman tells GlobeSt.com, adding that Gelt first looked at the property a year ago when it was first brought to market by Jim Crews of Cushman & Wakefield’s local office. “We felt that the timing was a little early, and we just waited. We were right on our timing. Fundamentals in the local market and especially the property have really improved. We feel that we have caught the upswing at just the right time.”

Wasserman says Colonnade Gardens’ location was quite appealing. “This property's irreplaceable location will always demand renters looking for affordable living in a great location,” he explains. The property is situated in the Camelback Corridor submarket within walking distance to prime shopping areas, office buildings and other amenities.

“When we acquired the property it was close to fully leased,” Wasserman notes. “The property was also well maintained. We are confident that there will be lots of upside potential over time.”

Part of that upside potential is tied to the Phoenix economy, Wasserman contends, adding that he has been a regular visitor to the Phoenix area for more than 25 years. “I have seen the transformation of the terrain from a relatively small city into a large metropolitan powerhouse,” he says. “We are very bullish on Arizona and feel that the dynamic Phoenix economy will emerge very strongly from the current recession. Arizona's business friendly environment, affordable living and great weather will continue to make it an attractive city for people to live. New high tech industries are paving the way for higher paying jobs and new auxiliary businesses.”

Gelt Acquires 415 Unit Apartment Complex In Biltmore District on Camelback Road in Phoenix, Arizona

2011-04-29T12:50:00.000-07:00

On Friday April 29^th, 2011 Los Angeles, California based Gelt announced it made its first acquisition in Arizona by purchasing a 415-unit apartment complex from national apartment REIT AIMCO. The $16,000,000 Ferntree & Colonnade Gardens (to be renamed Colonnade Gardens) acquisition is the largest property Gelt has acquired since its formation in 2008.

Gelt had been patiently tracking the local market for over two years before investing. According to Gelt Founder Keith Wasserman, “We feel that now is the time to enter the Phoenix market for multifamily properties. Colonnade Gardens was exactly the profile of property that we are targeting; class C+ building in an A location that we will upgrade over time. The Camelback corridor is a strong sub-market that will continue to improve.”

Adrian Goldstein, a Managing Member of the buying entity, is bullish on Phoenix. “This will be the first of many acquisitions for Gelt in Phoenix,” he said. “We are looking to build a portfolio of approximately 2,000 – 3,000 units within the next few years in the greater Phoenix area.”

The property is conveniently located close to restaurants, shopping, and entertainment. “The acquisition of Colonnade Gardens continues Gelt’s strategy of investing in properties and markets with strong growth potential and excellent demographics,” said Co-founder Damian Langere. “We have a plan to improve operations and to make Colonnade Gardens one of Camelback’s most desirable communities.”

Evan Rock, Gelt partner, believes that the Phoenix economic and political climate will continue to improve. “We anticipate that the immigration issue and foreclosures will subside. Strong job growth is already visible in this business friendly Sunbelt state.

Jim Crews of the Phoenix Cushman & Wakefield office represented both the buyer and seller in this transaction.

For more information on Gelt Inc. or to schedule an interview with its key principals, please feel free to contact us at (818) 676-9362 or via email at info@geltinc.com.

Gelt Inc. Reaches 100% Occupancy at Venetian Apartments

2011-04-20T12:40:00.000-07:00

On Wednesday April 20th, 2011, a full month sooner than projected, Gelt Inc. reached 100% Occupancy at Venetian Apartments in Bakersfield. The Venetian was a classic example of a quick rehab and full turnaround for a property.

When Gelt Inc. acquired this bank owned property in late November, 2010 they inherited 7 vacancies out of 25 units. We immediately went to work by renovating the interior of vacant units to make them more marketable, while also enhancing the curb appeal of the property with upgraded signage and new trim paint. Additionally, to get more people in the door, we initiated an aggressive Craigslist and printed flier campaign. We also worked directly with the onsite manager in brainstorming new ways to better retain existing tenants, build a sense of community, and improve the feeling of safety with video cameras and security gates. Existing tenants aware of the improvements to the property have also helped refer friends. At Gelt Inc. we are constantly learning new ways to prospect for tenants to beat the market.

Staying Cool in a Hot Market

2011-04-15T10:42:00.001-07:00

As summer draws near and temperatures rise, Gelt Inc. winds up escrow on its first deal in a hot market, Phoenix, Arizona. Since Phoenix has been one of the hardest hit markets, both in Residential and Commercial real estate, we have taken every measure possible to ensure a successful first acquisition. Success in real estate relies heavily on market knowledge and contacts; even veterans must tread carefully when entering new territory. Stumbling is part of the learning process and while it is important to never fear failure, it is equally important to make smart decisions. If you keep the following bullet points in mind, opportunities may arise and the whole process may go surprisingly smooth.

1. Location helps - Don't be afraid to pay more for a good location. Nothing is riskier than buying a building in a questionable or risky neighborhood within a market you don't fully know. Instead of predicting the path of development, prospect for deals that can benefit by increased efficiency and lower operating expenses.

2. Be a local for a day - Or even a week... Drive around, shop, eat, start conversations, go to an event; seeing and experiencing the physical condition of buildings, demographics, traffic, shopping centers, air and food quality, nightlife, and sentiments of locals may be more important than listening to a broker talk about their city.

3. Make Friends - Every investor knows that it is important to network and make contacts, however, be sure to take the time to ad the personal touch. Brokers, property managers, and lenders will be more willing to help you out if you have taken the time to meet them in person. Show interest in their lives, and be open to share about who you are. You need not commit to doing business with anyone, but if this ends up being the case, it always helps to work with a friend.

4. Do what you know - Buy a similar building to what you have been successful with in the past. Knowing how to handle a certain type and vintage property will ensure you can focus energy on overcoming other hurdles.

5. Don't swing for a homerun - If the deal looks too good to be true, it probably is. Stay away from deals with excessively high vacancy or deferred maintenance. Also, keep in mind that the successful local investors probably already heard about, and passed on, your 'amazing deal' before it even came to market.

6. Drop expectations - You are only starting from scratch if you have expectations for success. Change your perspective and train yourself to notice all the little victories that happen when you enter a new territory.

Gelt Inc. Meets Peter Bren, President & Chairman of the Board of KBS Realty Advisors

2011-04-07T15:27:00.000-07:00

On Wednesday April 6th, 2011 Gelt Inc. attended a monthly Moriah Society breakfast at the Beverly Hills Peninsula Hotel. The guest speaker for the event was Peter Bren, President & Chairman of the Board of KBS Realty Advisors. KBS Realty Advisors is one of the nation's largest buyers of commercial real estate and structured debt investments, having completed approximately $20.0 billion in transactional volume since its inception.

Peter Bren was an animated speaker with great stories that the entire audience loved to hear. One of the most memorable stories that he told was about a renowned doctor that decided to enter the real estate business by building a 26 unit condo project. The project was doomed for failure from day one. Me. Bren tried to convince his friend the doctor not to move forward with the project but he would not listen. The doctor got all of his doctor friends together to make the investment. He then personally guaranteed the construction financing. Mr. Bren told the audience that he told the doctor that there was a new two month course that could be taken to become a doctor. The doctor barked back that was the stupidest thing he had ever heard of. Mr. Bren then replied "then how do you expect to know what you are doing building this building without ever doing it before with no experience?" Needless to say the doctor's project went belly up and we was stuck owing a lot of money to the lenders.

Mr. Bren was a very personable individual. His private REIT KBS Realty Advisors has been wildly successful over the years. They have purchased class A trophy properties all over the country. Just recently they purchased a recently built, 60-story office tower in downtown Chicago for $655 million. Mr. Bren believes that now is a great time to buy commercial real estate.

After the breakfast we spoke to Mr. Bren personally about what we were doing at Gelt Inc. He told us that he could relate to us and that we were on the right path to success.

Multifamily Laundry: To Outsource or Self Manage. That is the Question.

2011-04-02T21:44:00.000-07:00

This is a question that all apartment owners face when deciding how to handle their laundry facilities. Not only is a laundry room an amenity on a property, but it can be a significant revenue generator if ran properly and efficiently.

Sometimes when acquiring a property there is already an existing laundry lease in place with a third party vendor that you will have to inherit. However, at other times a property will have a laundry room where the equipment is owned and operated by the property owner. Some properties provide laundry hookups in every unit and do not even have a laundry facility on site.

There are countless benefits of entering into a lease contract with a third party vendor that will run the laundry facilities and split the revenue with the owner. The lease program is the option that is preferred by most property owners/operators. By leasing to a third party vendor there is no need to count coins, keep up with liability insurance, bond your employees, etc.

A third party vendor can install new, top of the line high-efficiency equipment, maintain all the equipment, collect coins, audit all collections quickly and accurately, and take on all insurance and liability issues. They simply pay a commission based on the gross revenue generated from the laundry equipment. This commission rate is usually negotiable.

Key benefits include:

* Increased net operating income
* Full service and maintenance
* Lower water, sewer and utility bills
* Improved resident satisfaction

At Vernon Vista, we acquired a property where the previous owner collected all the coins themselves and owned their own equipment. When we took over only a about half of the machines were in working condition. The rest had "out of order" signs on them. Tenants were upset with the lousy service and often brought their laundry off site. In this case, even though the previous owner collected 100% of the coinage, the laundry rooms were not kept up, were not running at full capacity, and the machines were not properly serviced and maintained.

When Gelt Inc. took over, we immediately rehabbed the laundry rooms by adding folding stations and bars to hang the clothes while they dried. We also secured the door so it couldn't be easily broken into. Old flooring was replaced as well. We also signed a lease with Wash Laundry (formerly known as Web Service Company). Web would provide state of the art energy efficient equipment, service the machines, collect the coinage, and split with us a percentage of the revenue. In a lot of instances these laundry companies can even pay you a large up front figure for the right to split in the revenues. Usually they then take a higher fee during the life of the contract.

New Laundry Machines at Vernon Vista

One company in particular that utilizes the newest cutting edge technology in the laundry industry is Mac-Gray. Mac-Gray has a laundry system called "Change Point" that is a revolutionary Internet based laundry payment and monitoring system. It incorporates patented technology and proprietary features to ensure 100% revenue accountability, increased resident satisfaction, and more.

Some of the benefits of this new technology are:

Offers payment options of credit card, debit card, or coin.

The only payment system that is available with a choice of “central payment” or “pay at machine” architecture.

The only payment system that is equipped with LaundryView® monitoring, providing unique benefits for both residents and property management.

Change Point(R) connects washers and dryers to the Internet, giving residents the ability to pay for each wash or dry cycle with a debit card, credit card, or coin, eliminating the chore of finding the correct number of quarters or the need to keep track of or replenish a laundry card. Change Point(R) also utilizes Mac-Gray's proprietary LaundryView(R) monitoring system, which has been redesigned to provide new features for the multi-housing market, with robust service and revenue tracking capabilities for the property owners. It also allows residents to check the availability of washers and dryers before going to the laundry room, and to get a text message after their laundry is done. To learn more about Change Point(R), please go to www.macgray.com.

The combination of Change Point(R) with the enhanced LaundryView(R) (version 3.0) allows Mac-Gray to now monitor every aspect of laundry equipment operation, from live reporting of when a cycle is purchased, to enabling the remote detection of malfunctions and automatic dispatch of a technician. Reports that account for each transaction - and include a comprehensive service history - are updated daily and made available to the owner or manager of the property through Mac-Gray's client extranet.

As you can see these new machines and technology are top notch and probably only make economic sense in large complexes. The conclusion that we have come to is that it usually makes economic sense to collect your own coins and thus make 100% of the revenue by having your own machines on smaller properties. However, on larger properties, the laundry facilities should probably be leased to a professional third party vendor.

We will be trying different vendors and having our own machines and will report in the upcoming years which method is better for us.

Benefits of Using Revenue Management Software In Managing Apartments

2011-03-30T14:57:00.000-07:00

At Gelt Inc. we always look for an edge over our competition. We constantly attempt to provide the best possible service to our tenants in order to generate the highest rental rates that the market can bare at any given time without sacrificing our occupancy.

As active owners we are in constant communication with our third party property management companies. With one in particular, we have implemented an online property management software that we stand strongly behind called Appfolio.

We are now researching the benefits of using a price optimizing software that is rapidly being implemented as an industry standard by multiple large apartment owner across the United States. This software is similar in concept to the strategies that the airline industry has implemented, where the price of a passenger ticket fluctuates due to market demand.

The airline determines what is the maximum price they believe you are willing to pay considering your alternatives. If they charge too much, you may go to a competitor; Too little, and they’re leaving money on the table.

To determine the best price, the airlines use a complex algorithm that weighs several variables, including available seats left on the plane, number of seats already sold, prices paid for seats sold, projected demand for remaining seats, alternative options available and the price for those alternatives. This approach to pricing is called Revenue Management.

The old system of pricing apartment units was to do a market surveys and adjust pricing usually weekly, bi weekly, or even as infrequently as monthly according to what results are found in the field and what one can abstract from that information.

Since 2003, Revenue Management computerized systems have been in place and are being implemented at a growing rate. A Revenue Management computerized system to price multifamily units is based on several factors, including current and expected availability, projected demand and actual leasing velocity, recently achieved rental rates, amenities, lease term, move in date and existing market dynamics.

A Revenue Management system prices units on a daily basis using the support of technology. According to Yieldstar, a pioneer and leader in Price Optimization, "Revenue Management provides another critical advantage for multifamily: leasing associates can personally offer new and renewing prospects a multitude of price options to meet their needs, based on lease term and move in date, all of which are equally profitable for the property. As a result of being able to deliver this flexibility to prospects in the sales process, closing ratios improve and the leasing experience in elevated to a much more professional level."

Multifamily property owners and managers that have adopted Revenue Management are experiencing a clear revenue premium over those who still rely on traditional methods. Experts agree that Revenue Management technology will soon become a necessity to remain competitive.

The apartment owners is constantly balancing price versus occupancy. If the prices rise too rapidly above the market, occupancy usually goes down. This inverse relationship is more elastic in some markets and a bit more inelastic in other markets. However, the apartment owner constantly needs to pay attention to pricing in the marketplace and their own pricing for their units.

According to Yield Star, their Price Optimizer system has been proven to deliver a sustained revenue premium of two to five percent over properties not using the system. This extra revenue makes a tremendous difference to the bottom line and thus to the value of the property.

Another benefit of using a Revenue Management system is that it removes the burden of calculating or negotiating pricing from the on-site staff. In general, leasing personnel are typically uncomfortable with this responsibility due to a combination of uncertainty about pricing accuracy, the lack of sufficient time to do research, and discomfort in negotiating rent with prospective renters.

One final benefit of using a revenue management system is that it reduces an owners exposure to Fair Housing infractions, because subjectivity is eliminated when using pricing that is predetermined by an objective source.

Click here for a fantastic interview with Group Vice President of Strategic Systems at Englewood, Colo.-based Archstone, Donald Davidoff.

Gelt Inc. Attends ULI Small Lot Subdivision Event

2011-03-25T16:37:00.000-07:00

On March 24, 2011 Keith Wasserman of Gelt Inc. attended the ULI event titled "More Good Mews" presented by YLG (Young Leaders Group). At first I didn't know what to expect. I had never been to Atwater Village in Los Angeles, where the project is located.

I was pleasantly surprised by the creativity, ingenuity, and perseverance of the developer Rachel Gerstein of RLG Properties, Inc. Ms. Gerstein was the visionary behind the 23 single family solar powered homes that were just recently completed.

The purpose of the meeting was to introduce younger developers of the relatively new Los Angeles Small Lot Subdivision (SLS) ordinance. The SLS ordinance is a powerful tool for the development and financing of multi-family residential projects. The property called "The Mews at Atwater Village" was one of the first projects to utilize the SLS ordinance.

A small lot subdivision utilizes a smaller piece of land and allows for paper lot divisions which allows for more density. The Atwater homes were 23 single family homes on a very small parcel of land. Although they are close together, they do not share any common walls. Surprisingly, the way they were configured also allows for maximum privacy. Also, the monthly HOA dues are very small relative to normal condominium HOA fees.

The Mews at Atwater Village is an eco-friendly community consisting of 23 new homes. In addition to utilizing the innovative SLS ordinance, the leading architects of the Mews have incorporated a variety of LEED elements into the project, including solar power energy systems as a standard feature.

INDOOR/OUTDOOR LIVING

The Mews at Atwater Village were designed by award-winning architects Corsini + Stark, AIA. These "mews houses" capture the sleek style & simplicity found in modern architecture, including open floor plans, high ceilings and walls of glass that open to private outdoor courtyards- transitioning to indoor/ outdoor living space. Each home also has an intimate front, side or back outdoor area perfect for entertaining or just chilling.

The property is located on a lot which is situated above the rooftops of adjacent houses, which allows most of the homes to have beautiful views from oversize glass windows of serene sunrises or relaxing sunsets over the hills of neighboring Griffith Park.

The homes range in size from 1500 sq. ft. to 1600 sq. ft. (plus 2 car garages). These homes are nearly 20% larger than most homes in the area, yet will be priced lower than other similar sized homes in Atwater Village and neighboring Silver Lake.

They make an ideal home for someone that want to own single family home at the price of a high end condo. Clock on this link to learn more about Small Lot Subdivisions and see other small lot subdivision projects.

Bakersfield College Receives Largest Donation From A Private Individual To A Community College In the United States

2011-03-24T16:39:00.000-07:00

A local Bakersfield dermatologist named Norman Levan just broke a record in philanthropy. He has donated $14 million to Bakersfield College for scholarships and other initiatives. This gift from a private individual is the largest to a community college in the United States.

Gelt Inc. happens to house a good amount of students at both Venetian and Vernon Vista.

In 2006 Dr. Levan donated $5.7 million to Bakersfield College, which was the largest private individual donation to a community college in California at the time, and one of the top five in the nation.

According to the Bakersfield Californian, "the name of the donor was being kept secret until an announcement and celebration Thursday, but that information was leaked Wednesday, said BC spokeswoman Amber Chiang. Earlier this week, she called the donation a 'landmark' private donation."

More than three-fourths of the $14 million will go toward scholarships and will more than double the amount the college gives each year to students to $1 million. The gift tops the previous record private individual donation to a U.S. community college of $10 million made to Santa Monica College.

Mr. Levan has made massive donations to higher education in general. He gave nearly $6 million to open the Dr. Norman Levan Center for Humanistic Medicine in Jerusalem's Shaare Zedek Medical Center. Also, he gave another $6 million to St. John's College in Santa Fe, N.M., to build the Norman and Betty Levan Hall in its Graduate Institute of Liberal Education.

Levan, in past interviews with The Californian, has said education has "changed my life."

Levan is professor emeritus and former chief of dermatology at USC's School of Medicine, and attended St. John's College in Santa Fe, where he focused on reading and discussion of the classics of literature.

According to Norman Levan, "Bakersfield College is an excellent school and one of the pearls of the Central Valley." Dr. Levan also said in a news release, "It is deserving of support for that reason. Bakersfield College students leave stronger for their educational and career futures."

Gelt Inc. Attends Eleventh Annual Kern County Economic Summit

2011-03-24T09:44:00.000-07:00

On March 24, 2011, Keith Wasserman, CEO of Gelt Inc. attended the 2011 Kern County Economic Summit hosted by the Kern Economic Development Corporation. The KEDC is a private nonprofit company dedicated to ensuring a diverse and strong economic climate for all businesses in Kern County. Kern EDC recruits new businesses to Kern County, helps established businesses with relocation and/or expansion efforts and works with local companies to provide economic data, workforce information and facilitation of the regulatory process. They actively market to six industry sectors:

* Value-Added Agriculture
* Logistics and Manufacturing
* Energy and Chemical
* Business and Professional Services
* Healthcare and Medical Technology
* Aerospace and Defense

Gelt Inc. now owns fifteen multifamily properties in Bakersfield and are continuing to make apartment property acquisitions there. We continue to invest heavily in this Kern County city and always like to keep our ear to the ground to know what is going on in our local market.

The first speaker at the event was Dr. Abbas Grammy, professor of economics and editor/publisher of the Kern Economic Journal. Dr. Grammy presented information on key demographic, social, economic, and housing indicators. The following is some of the key information that was given:

- Kern County population growth has been 1.5% annually for the past ten years, far surpassing the state of California and the rest of the country.

- The population is on the younger side with 31% under the age of 18 (this set of the population are going to make our prime renter demographic in the upcoming decade)

- 46% of the population in Kern is Hispanic

- Kern County has a relatively smaller private sector, but a larger public sector

- There are currently too many high school drop outs at 28.6% of the population.

- Higher education needs improvement because only 21% of the adult population has a college degree.

- There are larger average family sizes and a high rate of poverty.

- Over 50% of families are "low income" earning less than $50,000 a year.

- 17% of families live in poverty

Most of the information provided by Dr. Grammy was pretty negative for Kern County as a whole. However, the city of Bakersfield bucks a lot of these trends. The percentage of unemployment in Bakersfield for example is around half of the unemployment rate in Kern County. One important reason why people keep coming to Kern County is the inexpensive prices of houses. The average house sold for only $93 a foot and the median rent is only $782. The average cost of a house in California for example is $262,000.

One speaker that I learned a lot from was Jim Beck, the General Manger of the Kern County Water Agency. Mr. Beck oversees the operation and administration of the Kern County Water agency, which has broad water supply management responsibilities within Kern County. Some of the important issues that I learned from Jim Beck are as follows:

- Cotton is not in the top 10 commodities in Kern even though recently it has been making significant strides due to the rapid rise in it's price.

- There is not as much rain in Kern County like in Northern California

- Groundwater banking is crucial in Kern County

- from 1997 to 2005 over $300 million has been invested in water banking

- Kern has a heavy reliance on Ground Water

The next speaker was Yelena Takhtamanova. Ms. Takhtamanova reviewed the recent national and regional economic developments and also presented the Federal Reserve Bank of San Francisco's national economic forecast. One main subject that I took away from her speech was that the state and local government spending is down tremendously in this recession compared to other recessions. Also, commodity prices are rising rapidly and there has been a small uptick in inflation. She spoke about how a majority of our consumption in Kern County is services and this will continue to grow.

My favorite speaker was Barry Hibbard, a Principal of CVI - Central Valley Investments. Mr. Hibbard has more than twenty years of experience in the California commercial and industrial development arena. Mr. Hibbard was the former vice president of commercial and industrial development at the Tejon Ranch Company. During his tenure he sold, leased, or developed 300 acres with 3.3 million square feet of industrial properties and 112,000 square feet of freeway commercial/retail properties.

Mr. Hibbard discussed the fact that manufacturing jobs have been rapidly replaced with supply chain logistics jobs. Logistics is all about having an available work force, available land, and a pro business community; all of which Bakersfield and Kern County as a whole have. There is a negative perception that logistics development is bad. Although these are blue collar jobs, they are well paid and jobs that the people of Kern County desperately need.

There has been extreme congestion at the Los Angeles Ports. The ports represent over $1 billion of goods received daily. Ikea for example brings in 600 containers a week to their distribution center near Bakersfield. There has been a big push for the logistics companies to truck their merchandise for distribution to Kern County where there is affordable land to build large distribution centers. There is also an ample blue collared work force.

Mr. Hibbard believed that there needed to be more courses taught in Kern County colleges regarding logistics and warehouse management. Some of the largest logistic companies and retailers have humongous distribution centers in Kern County. Some are Walmart, Sears, Target, and Ikea.

The final speaker was Dr. John Husing. Dr. Husing is the head of Economics and Politics Inc. He is a leading authority on the forces that shape the Southern California economy. His company provides consulting services for municipalities and counties with economic strategies, statistical data packages, recommendations for public policy and briefing presentations to business and political leaders about the nature, growth and economic trends of Southern California.

Dr. Husing discussed how US manufacturing orders are now soaring. Consumer confidence is back up. He explained how 90.5% of new jobs from 2000 to 2007 were in Southern California. The top industries in order of size in Kern County are:

1). Agriculture
2). Oil & Gas
3). Logistics
4). Manufacturing
5). Construction
6). Defense

These are mainly blue collar jobs. The agriculture business in Kern exploded from $1 billion to $4 billion from 1985 - 2010. The US dollar has been losing value significantly which has been good for our exports. Dr Husing believes that creating these higher paying blue collar jobs will help the overall economy succeed and pull itself out of the recession.

For more information from the event, please visit THIS ARTICLE from Bakersfield.com.

Gelt Inc. Supports Japan

2011-03-14T09:29:00.000-07:00

At Gelt Inc. we are in the business of providing safe and affordable housing to the general public. Sometimes we take for granted having a roof over our head to provide shelter.

With the latest earthquake and tsunami catastrophe that has occurred in Japan, there are millions of affected families, thousands of which have lost their homes.

We have donated to the American Red Cross and urge you to support any of the following charitable organizations.

The Executives Breakfast with Senior Vice President of Development for Westifled, Larry Green

2011-03-07T11:20:00.000-08:00

On Thursday, March 3, 2011, Keith Wasserman and Damian Langere of Gelt Inc. and Gelena Skya of Grubb and Ellis, attended a breakfast hosted by "The Executives" benefiting the Jewish Home. The Los Angeles Jewish Home is a "non-profit organization that has been the place of safety and security, activity, wellness, and longevity for seniors."

The Jewish Home is a complete multi-level senior living facility, providing seven distinctive levels of care that include Independent Living, Residential Care, Assisted Living Care, Skilled Nursing, Geriatric Psychiatry, Alzheimer's Care, and Skirball Hospice.

Gelt Inc. supports the Jewish Home and the services it provides to the community.

The guest speaker Larry Green, discussed the long term vision of The Village at Westfield Topanga. Currently, the Topanga Mall is a thriving mall featuring tenants such as Nordstroms, Target, Neiman Marcus, and hundreds of local and national retailers. Westfield has been working for over forty years on this site and its adjacent site that is entitled for millions of square feet of commercial use.

Larry Green discussed the newest addition to the Westfield Topanga Mall. The new addition called "The Village at Westfield Topanga" will feature an extremely high end and upscale Costco. The West Valley desperately needs a Costco as all of its residents are forced to drive long distances to their current nearest Costco.

Once Westfield landed Costco, a plethora of other retailers, Hoteliers, and other prospective tenants came in throngs due to Costco's anchor position in retail. Costco brings a large audience of affluent shoppers to an area which other retailers and service providers feed off of.

Westfield has been a pioneer in creating exceptional shopping destinations that are rich with amenities and retailers that its customers want.

All in all, we at Gelt Inc. learned a lot about the development process and how slow it really takes. We will continue acquiring well located multifamily properties at large discounts from replacement cost. We believe that in these economic times, it makes much more sense to acquire properties at fractions of the cost of developing them from the ground up. All seventeen acquisitions that we have made thus far fit this criteria.

Wilbur K. Woo Greater China Business Conference

2011-03-07T10:38:00.000-08:00

On March 4, 2011 Keith Wasserman of Gelt Inc. attended the Wilbur K. Woo Greater China Business Conference with Melissa Wasserman of Wasserman, Comden, Casselman, & Esensten, LLP. The conference had over two hundred attendees that came from all across the country.

The conference's mission was to foster a stronger relationship between America and China and to explain the vast opportunities that China provides.

The first keynote speaker was Ira Kalish, the Director of Global Economics at Deloitte Research. Ira discussed how the rate of growth for the US, Western Europe, and Japan grew slowly in 2011. The US consumer that was spending freely by using their equity in their home as a piggy bank had dried up. The drop off of purchases by the US of China goods has temporarily put a dent in China's blisteringly fast growing economy.

However, the good news is that China's economy is much stronger than the US economy at this moment in time. The Chinese are big savers. They did not get into the same trouble as Americans did by borrowing to the hilt. China is now relying more and more on domestic demand rather than exports.

Another factor in play is that China is experiencing rising wages for the first time. China may be priced out as the world's cheapest place of producing goods to other countries like India where the wages are much lower. China will also be relying on emerging markets like India to export more of their goods.

Mr. Kalish also described how there is extreme pressure on China to revalue their currency. "China must allow their currency to rise faster or else they will be subject to large inflation," Mr. Kalish stated.

The Chinese consumer is very brand conscious and will pay a premium for non pirated brands. China is in a healthier economic set because it's consumers save as a larger percent of the GDP. Mr. Kalish does believe that their is a property bubble being created which might cause social unrest because millions of people are being priced out of the housing market. The Chinese government is trying to gradually slow down this property bubble by raising down payment requirements and other measures.

Other esteemed speakers that attended the seminar were Tami Zhu, the Director of International Business Development and Marketing at Alibaba.com Americas and Joy Chen an Executive Recruiter and former Deputy Mayor of Los Angeles.

Keith Wasserman and Melissa Wasserman later attended one panel on "Clean Technology" and one panel titled "Media: New Media for a New Generation."

The speakers in both panels were top notch. Feng Yi Chi, Director of Interactive Entertainment Group, Tencent Inc. was featured on the media panel with Peter Shiao, CEO of Orb Media Group, Casey Silver, President of Casey Silver Productions, and Craig Dehmel, Senior VP of Twentieth Century Fox International.

The discussions in the media panel centered on the exponential growth of the theatrical film business in China. China's box office has grown to over $1.5 billion annually and is growing fast. Just yesterday on March 6, 2011 a Los Angeles Times article titled "China is on a Cinema-Building Binge" reiterated everything that was spoken by the media panel at the conference.

The Clean Technology Panel featured Sean Blankenship, SVP of Marketing at CODA Automotive, Pete Cooper, Director of Global Development for Better Place, Kevin Chen, Director of Project Development for Trina Solar, and Veena Wu, Business Development Manager at BYD.

This panel was also extremely forward thinking and confident that there will be an revolutionary switch to electric cars as they become more affordable and when the technology improves.

All of the companies on this panel have had hundreds of millions in Venture Capital funding and other private investment. The initial capital investment in this field is quite large but there is great potential for profits and changing the world.

Overall the conference was very informative, fun and educational. We recommend it to anyone that wants to learn more about China and doing business with China.

Moriah Society Breakfast With Los Angeles City Controller Wendy Greuel

2011-03-02T11:17:00.000-08:00

On March 2nd, Gelt Inc. attended its monthly Moriah Society breakfast. The speaker was Los Angeles City Controller Wendy Greuel. Ms. Greuel discussed the current status of Los Angeles' budget. She mentioned that Los Angeles would have gone bankrupt if not for the slush fund that they dipped into. She explained how the city reversed its decision to sell a lot of the city's parking lots and other properties to generate the needed shortfall.

Wendy is a San Fernando Valley resident who took on the position of City Controller on March 3, 2009. She has announced that she intends to run for Mayor of Los Angeles in 2013.

Ms. Greuel is a big proponent of cutting down on big government spending. She has taken a pay cut personally and is in favor of cutting pay for Los Angeles government employees across the board. She also is active in reducing government employee incentives such as having cell phones and travel paid for. She has saved the city millions of dollars by cracking down on people that have been cheating their taxes.

When a Moriah Society Member asked if she believed there should be a football stadium in LA, she replied affirmatively. However, she is a strong believer that the city should not pony up funds for this endeavor and that the investment should be done solely for private enterprise.

Sam Lim's South Bay Hyundai Grand Opening

2011-02-27T21:47:00.000-08:00

On February 25th, 2011 Keith Wasserman attended another Grand Opening for his good friend Sam Lim's South Bay Hyundai dealership in Torrance. This is Mr. Lim's second Hyundai dealership. About a year and a half ago Keith attended Sam's first Grand Opening in the City of Industry for the Puente Hills Hyundai.

Sam Lim is a true entrepreneur. He was the co-owner of American Apparel and grew that company into a retail giant doing over $500 million in annual sales. After selling his stake in American Apparel, Sam invested with Gelt Inc. in real estate.

One particular real estate deal that Sam purchased was a car dealership property. In a long story short, the tenant went bankrupt and Sam inherited a vacant property. Knowing that it would be difficult to lease it to another car dealership in one of the greatest recessions America has ever seen, Sam doubled down and created his own Hyundai dealership on that site in the City of Industry.

Mr. Lim has jumped head first into the car industry that is crowded with larger competitors. However, Mr. Lim's creative thinking and ingenuity will most likely result in his Hyundai dealerships' success.

We at Gelt Inc. wish Sam a very successful future in the automotive business and will be following his progress every step of the way. I have no doubt in my mind that one day Mr. Lim will be one of the largest Hyundai dealers in California.

Gelt Inc. Attends Bisnow Multifamily Summit

2011-02-17T13:35:00.000-08:00

On February 17, 2011 Damian Langere and Keith Wasserman of Gelt Inc. attended the Bisnow Multifamily Summit held at the downtown Los Angeles Sheraton. The turnout was so great that there were not enough seats for all the participants.

The panel of speakers were top notch consisting of such industry heavy hitters such as Bob Hart, President/CEO of Kennedy Wilson Multifamily, Bill Witte, President of Related California, Steven Fowlkes, President of R.W. Selby & Company, Brian Hansen Director of Wood Partners, and a host of other multifamily real estate professionals.

All of the speakers validated what we have been seeing on the ground. There has been a tremendous amount of cap rate compression for A quality properties in A locations. There is abundant debt available at historically low interest rates provided by Fannie Mae and Freddie Mac. Also, Life Insurance companies are beginning to compete with these GSEs, and in some instances have been able to provide financing up to a 80% LTV and have financed deals that normally the GSEs would not touch.

The current state of the multifamily market in Southern California and Los Angeles are that prices are rapidly rising because the fundamentals have greatly improved. Rental growth has been tremendous within the last six to twelve months and occupancy has increased tremendously.

Gelt Inc. Attents Annual Bakersfield Chamber of Commerce Dinner Gala

2011-02-07T22:00:00.000-08:00

On January 27th, 2011, Keith Wasserman and Damian Langere of Gelt Inc. attended the Annual Bakersfield Chamber of Commerce Dinner Gala. The evening was spectacular with live music, entertainment, and amazing food.

Attending the event were all of the movers and shakers in Bakersfield. We were privileged to meet many local business owners, political figures, and other distinguished residents of Bakersfield. By going to these events we maintain a pulse on what is happening in the local market.

We enjoy supporting the local Chamber of Commerce and plan to do so in every market where we acquire properties. At Gelt Inc. we believe in positively contributing to the communities in which we invest in.

Gelt Inc. Attends "The New Normal" Adapting to the Great Recession

2011-02-07T16:18:00.000-08:00

On February 4, 2011, Gelt Inc. attended an event called "The New Normal" at the UCLA Anderson School of Business. The event was put on by Standard Capital, LLC and the UCLA Ziman Center. The event brought together developers, attorneys, brokers, lenders and a group of prominent L.A.-based real estate investors for the panel discussion.

From the discussion we learned a lot of valuable information about the current commercial real estate market from five esteemed panelists. One of the panelists is the "godfather" of real estate syndication named Sam Freshman. We have met Sam on a number of occasions and he has always been very nice to us and given us pertinent advice. All of the panelists were very bullish on multifamily investing and believed values of apartment buildings were in an upward cycle that is showing no signs of slowing.

After the meeting we spoke with a fellow real estate investor named Tim Cahill of Equity Apartments Group, LLC. Everything that Tim told us about the state of the multifamily real estate sector was dead on with what our experiences were like. Like Gelt Inc., Tim Cahill has been investing in apartment buildings in secondary and tertiary markets that have strong fundamentals. Like Gelt Inc. he has a growing loyal group of investors who have been doing really well investing with him. Tim specializes in Ventura and Santa Barbara apartment complexes.

Please follow the blog as Gelt Inc. is soon to make an exciting announcement!

Venetian Apartment Homes: Rehabbing is Paying Off Handsomely

2011-02-07T10:32:00.000-08:00

Gelt Inc.'s rehab effort is beginning to pay off at Venetian Apartment Homes, the 25 unit Bakersfield, CA apartment complex that Gelt Inc. purchased as an REO in November, 2010. Watch this great video that shows the hands on care and attention that every property of ours gets from day one.

As a result of our aggressive pro active approach to real estate investing, our existing tenants are much happier and we are renting the available units at significantly higher rents than previously achieved. There is an approximate 20% increase in rents due to all the work that we have done on the property.

From upgrading unit interiors, to fixing deferred maintenance, to taking care of health and safety issues, Gelt Inc. takes the bull by the horns to turn around a struggling property. We knew that Venetian had tremendous potential and good bones the moment we identified it as a potential acquisition.

We believe within the next two to three months we will reach full occupancy and be able to increase rents when existing leases expire and when we turn units.

Please keep following the blog for up to date information with the progress of Venetian and other endeavors of Gelt Inc.

Housing Woes Fuel Apartment Surge

2011-02-03T13:49:00.000-08:00

A January 29, 2011 Wall Street Journal stated, "Falling home prices and lethargic sales have been bad news for homeowners, but a boost for one group of real-estate investors: apartment-building landlords." The sentiment in the multifamily industry is that of reluctant optimism; while everyone else is struggling, we're actually doing quite well. Experience real estate investors know well that the surge of foreclosures means more people living in apartments.

For their resilience and strong fundamentals, apartments as an investment continue to be praised by analysts and experts who compare the spectrum of commercial real estate. "With millions of families switching from being homeowners to renters, apartment-building values have soared. Investor demand is so intense, prices of some properties are approaching values last seen in mid-2007." Such adulation has created a feeding frenzy in the sector which has propped up prices and lowered CAP rates.

Cheap government financing available apartment buildings over 90% occupied has exacerbated the situation and strengthened the demand for performing properties. Once too low CAP rates have returned as a result of low interest rate which help certain purchases 'make sense' on paper.

Increase in rents and worries about inflation have also made the golden goose apartment buildings the target of large funds."Green Street expects every major metro market to see rent growth between 3% and 10% this year, with the biggest gains in San Jose, Calif., San Francisco and New York City." Since Real Estate has been long touted as the best hedge against inflation, big name players with lots on money to swing around are coming in droves to acquire properties that can weather the storm of inflation.

Gelt Inc. is looking for properties under the radar of pension funds and life insurance companies, which may be too small or require too much work for their liking. With our expertise in finding off market deals and negotiating the right price, we are able to buy assets that will ride the wave of growth that has historically followed increased demand for apartments.

Street Presence

2011-02-01T15:34:00.001-08:00

Most of the foot traffic that we get to our apartment complexes in Bakersfield are through referrals from our other complexes and drive-bys. One of the first things that we have done since acquiring the Venetian Apartments in Bakersfield is create a professional monument sign for the property and add lots of flags. In the long run these cost effective advertising methods really pay off! Can you imagine that this property did not have a sign or a phone number when we acquired it?

At Gelt Inc, we give a professional appearance to all of our properties. We make sure our physical street presence is top notch. Every small attention to detail in this business results in large results such as higher occupancy, greater tenant retention, and ability to charge higher rents. All of this makes us happy and our investors even happier.

Keep following the blog to see a full transformation of the Venetian. In the upcoming weeks we will be adding pictures of the exterior where we are changing all the trim coloring from a dull sun damaged and faded blue, to a sharp black and tan color scheme to attract even more traffic and distinguish us from all the competition.

The Venetian: Blossoming Into A Great Property

2011-01-13T09:20:00.000-08:00

Damian Langere of Gelt Inc. has been hard at work upgrading the interiors of the units at the 25 unit Bakersfield property called the "Venetian." His hard work has already paid off as we were able to rent the upgraded unit for 20% higher than previous asking rents.

Take a look at these photos of the upgraded unit and some other upgrades that we are doing on the property. We are adding value by increasing rents with nice upgrades at minimal costs:

New Kitchen Counter Tops

New Hinges and Cabinet Knobs

New Appliances and Tile Floor

New Tile Floor and 5 inch molding

New Carpet

New Carpet

New Vanity Sink, Faucet, and New Tile Floor

5 inch base board

Tile floor

New Deeper Sink and Counter Top

Rain Gutter

Rain Gutter

Property

Model Unit

Model Unit

New Security Fence

Gelt Inc. Attends ULI's VantageForum 2011

2011-01-12T10:41:00.000-08:00

On January 11, 2011, Keith Wasserman of Gelt Inc. attended VantageForum 2011 presented by ULI and the UCLA Ziman Center for Real Estate. The turnout was spectacular as many real estate professionals were eager to hear industry veterans' views on the national real estate economy.

Overall, the conference was surprisingly very bullish for most real estate sectors. Almost everyone believed that we were at the bottom of the recession and that the industry had no where to go but up from here. However, the "food group" that was most appealing to almost all of the speakers turned out to be "multifamily."

Multifamily is having the best economic indicators and fundamentals backing it up. According to a recent Wall Street Journal Article published January 5th, 2011 titled "For Apartments, a Hot Winter, the nation's apartment market remained robust in the fourth quarter with vacancies falling below 7% for the first time in two years, according to new data."

Usually the winter months are the slowest months of the year to rent apartment homes. However this year there was a tremendously strong demand, which defied typical winter slowness, and pushed the average national rent up for the fourth quarter in a row! This is a far departure from the freebies and discounts landlords were using to find and keep tenants during the downturn.

At Gelt Inc, we believe that the apartment market fundamentals will continue to improve. We are seeing across our entire portfolio an increase in occupancy, and an ability to slow down and burn off our concessions that we were giving.

At Vernon Vista, we currently have a waiting list because we are at 100% occupancy. Bridgemont Terrace is not far behind.

According to Managing Director Hessam Nadji of Marcus and Millichap, "This year will mark the first across-the-board reduction in vacancy since at least 1990, driven by the release of pent-up demand, falling home-ownership rates and job creation."

Another factor driving the occupancy rates up at apartment homes is the fact that there is so little new construction. Nationwide in the fourth quarter of 2010, there were only 12,000 units delivered in the entire United States.

According to Reis data, the national apartment-vacancy rate was 6.6% in the fourth quarter, down from 7.1% in the third quarter and 8% in the fourth quarter a year ago.

At Gelt Inc. we are continuing to be in "acquisitions mode." We are on the hunt for apartment communities that have 50 or more units, that are in the $5 - $25 million range, and that have a value added component through more effective management, repositioning via fixing deferred maintenance and neglect, or a combination of the two. We also like to purchase complexes near large employment centers, good school systems and universities, and high growth cities.

The summer months are the prime apartment-rental season as students enter and exit college and families relocate in time for the new school year. Fewer moves typically take place during the winter months. But this year, occupied stock increased by about 58,000 units in the fourth quarter, the largest number of apartments taken during the quarter in a decade.

Keep following the blog to see when and where Gelt Inc. will make its next acquisition.

EB-5 Foreign Investment Visa

2011-01-07T09:38:00.001-08:00

Over the past several months, Gelt Inc. has been analyzing investment opportunities that qualify for the EB-5 visa for Immigrant Investors. The EB-5 visa was created by the Immigration Act of 1990. This visa provides a method of obtaining a green card for foreign nationals who invest money in the United States. To obtain the EB-5 visa, foreign investors must invest at least $500,000 in an investment within the United States which will create new jobs for local economies.

Because of the job creation requirement, Gelt Inc. has been scouring the market for certain qualified investments or regional centers with high unemployment rates or potential distressed development/redevelopment plays. So far we have looked at hotels, farmland, and office redevelopment.

The EB5 program helps families get a green card before they emigrate to the US. There is no requirement to manage the business and investors are able to be passive minority owners. The green card allows families to live anywhere in the US, regardless of the investments location. You are free to work, retire, or do whatever you wish!

Three ways to qualify for EB-5:

1. Invest $1,000,000 and hire ten employees anywhere in the USA, or

2. Invest $500,000 and hire ten employees in an area where the unemployment rate exceeds the national average by 150% or the rural population is less than 20,000, or

3. Invest in a Government designated Regional Center and avoid direct employment.

Once a qualified EB-5 investment is identified, economist would be hired to determine the correct amount of jobs created by the business or real estate being purchased. The economist would research immediate job creation as well as secondary job creation from employees conducting business and living locally. The economic impact analysis would would determine how many foreign investors will be able to participate in the EB-5 program for that particular investment. One unit of foreign investment of $500,000 or $1,000,000 can be invested for every ten new jobs created.

Funds must come from a legal source, which may include pension funds, gifts, loans, trusts, and settlements. The recipient of the EB-5 visa must be the same person who made the investment. For all the visa requirements visit the US Citizenship and Immigration Service website (www.uscis.gov).

In the Heat of Battle

2010-12-20T11:13:00.001-08:00

In the heat of negotiations information is never perfect. As investors we must draw on experience, property financial history, market data, broker insight, financial markets, gut intuition, and more to determine our highest and best offer.

Experience in running similar real estate will allow you to gauge how much income the property will be able to generate, and how much operating expenses will likely be. If you have a general idea of how much a property will cost to run, and where market rents are, you will be able to more closely scrutinize the property's trailing numbers.

The twelve month trailing income and expense financial statement is the most all-encompassing snapshot of a property's past and future performance. However, this is only scratching the surface. Digging deeper into older numbers may reveal hidden potential. Also, closely examining the current numbers will allow you to see what wounds need to be healed. If utility expense has sharply increased without much change in billing rates, this is a red flag helping point out some inefficiency on the property.

Market research is never a perfect science. Knowing the current comparable sales and rents helps build a solid foundation, but being able to spot trends is where this knowledge really becomes an asset. Unfortunately, predicting rent grown is as much of an art as it is a wild goose chase, so staying focused on fundamentals and not getting carried away with the prospect of a market turning for the better is key to long term success.

Brokers, especially the listing broker, has key knowledge not only about the property, but also about the quantity and seriousness of other offers. Knowing the competition is key to not overpaying for a property. The hard part comes with getting the right information from a broker. A salesman never shows all his cards, their prime motivation, besides getting their client the highest price, is to get the deal sold; if they can't do this, they don't get paid! Building up a sense of high demand is simply part of their job. Your job as an investor is to do the best you can to determine the true from the false. Make brokers your friend, convey the seriousness of your offer, and give supporting documents stating your liquidity and experience, and take everything they say with a grain of salt.

Financial markets are in constant flux. Interest rates are changing on a daily basis and locking in a good rate can largely be due to luck. Regardless, staying privy to how money is being lent, large policy changes, and the macro economy in general will help all investors mitigate risk and help determine their highest and best offer on a property. For instance, a 258 unit property in Bakersfield that Gelt Inc. offered on was recently acquired at a record low interest rate. Over a 10 year hold on a $25 Million transaction of this size, a 25-50 basis point drop in interest is very significant and can amount to several hundred thousands dollars of extra profit.

Our gut intuition told us that the previously mentioned 258 unit deal in Bakersfield was a good buy, however, in the heat of negotiations it is hard to judge the entire picture.

To read more about the Edgewater Apartments that sold for $25 Million click the following link:

258-Unit Sale Ranks Tops in Central Valley

CLICK HERE

Bakersfield: The Next Five Years

2010-12-15T17:07:00.000-08:00

The other day Keith Wasserman attended a Bakersfield Chamber of Commerce event titled "Bakersfield: The Next Five Year." Well over two hundred attendees showed up at the Marriot Hotel next to the Convention Center.

There were three panelists that spoke. One was the head of the Bakersfield Realtors Association named Gail Malouf. Another was a leading member of the High Speed Rail Authority. The third panelist spoke about "Obamacare."

Overall, the mood was positive. According to local banker Bruce Jay of Valley Republic Bank (the local bank we bank with) the message was overall positive. Said Bruce, "I walked away with a consensus that things likely will not get worse. There's positives on the horizon."

Opening speaker Gail Malouf, 2010 President of the Bakersfield Association of Realtors, said the local residential real estate industry will probably remain in short sale and foreclosure mode for the next three to five years.

Although demand for homes is up, she said, supply is up even higher. And despite low interest rates and affordable local home prices, banks are being careful about who they lend to, she said. It doesn't help that a new home appraisal code is pushing valuations even lower. Because of the extensive criteria required to be approved to get a loan to purchase a home, more people will be having to rent. This is good news to apartment owners like ourselves.

According to the high-speed rail engineer, Parsons Brinckerhoff Vice President Thomas Tracy, estimated that the bullet train project will create 600,000 construction and other one-time jobs, as well as 5,000 permanent operations and maintenance positions. By 2035, he said, it will have boosted the state's economy by 450,000 jobs.

The estimated 800 mile, $43 billion project, expected to be complete in 2020, still lacks the $10 billion to $12 billion expected to come from the private sector, Tracy said.

He voiced confidence that the system would ultimately save taxpayers billions in freeway and airport runway investments. But he emphasized that jobs are the most immediate benefit.

Job growth is key to our business of renting apartment units. Where there is more jobs available and higher wages earned, rents and demand will go up hand in hand.

The GREEN Advantage

2010-12-15T15:29:00.000-08:00

Tankless Hot Water System

FROM THIS TO THIS!

Taking advantage of new technology is a top priority at Gelt Inc., especially when it helps the environment and our investors' wallets. On our latest 25 unit acquisition in Bakersfield, we killed two birds with one stone by implementing a tankless water heating system. Tenants have been notified and construction has already begun during-off peak hours to install the five Norritz (http://wwwnoritz.com) tankless water heaters. With the old systems, tenants had to wait sometimes up to twenty minutes to get hot water! This was a main complaint we got from tenants when we talked to each tenant during our walk-throughs. Since we as owners pay this water bill you can see how much water was literally going down the drain! We decided to utilize this energy efficient technology instead of throwing good money after bad by repairing the failing system. Our marketing material will include tag-lines like "eco-friendly instant hot water paid by landlord", which we believe is a refreshing spin on the traditional amenities touted by many outdated management companies. The best part about going tankless was the price. While the Norritz system will be $2,000 more that what it would have costs us to simply repair the existing boilers and install a circulating pump, we estimate $6,000 in tax rebates! Our net savings will be over $4,000.

Here are some selling points from the Norritz website:

ENDLESS HOT WATER

When is the last time you relaxed and soaked yourself in a hot steamy bath? More than ever, with today's busy lifestyle, your body deserves a nice stress relieving moment in your hot tub. Unfortunately, a tank water heater can only supply enough hot water to fill a bath tub and may have enough hot water left for a quick shower.

With a Noritz tankless water heater you will get endless hot water. Tankless water heaters heat water on demand, and that means you never have to worry about running out of hot water. Imagine the luxury of always having enough hot water for everyone to enjoy and relax - hot tubs, showers and still have an endless supply for the rest of your household needs.

HIGHER VOLUME

Endless supply with more volume - not only can a tankless water heater provide an endless supply of hot water, it can also deliver more of it for all your hot water demands. Only Noritz offers a multi-system set-up that can link up to 24 units, which translates to 317 gallons per minute - enough for over 126 showers at once! With this much volume, Noritz tankless water heaters can meet any hot water demand of today’s homes.

CLEAN WATER

With a tankless water heater, water is heated as it passes through the unit so you will always be using afresh supply of water. As the years pass by, traditional tank water heaters start to rust and build-up scale inside the tank, which is where your hot water is being stored for use. Click on the link below to see what it looks like inside an old tank heater.

SPACE SAVINGS

Compared to traditional water heaters, one of the most obvious differences is its small size. Compact in design, Noritz tankless water heaters can be installed virtually anywhere. Our tankless water heaters mount on the wall, inside or outside.

Depending upon what your needs are, if you want fast hot water delivery, you can actually relocate the tankless heater closer to the fixtures you use most often. Therefore, a tankless not only saves you space, but can also save you water. Relocating a big, bulky tank to a location that makes more sense would definitely be a challenge.

ENERGY SAVINGS

With a Noritz tankless water heater, you'll save energy and thus, money. Our on-demand systems require no pilot light and can save about half the cost of your current water heating bill since there is no re-heating of water as with traditional water heaters. Compared to a tank water heater's 60% efficiency, an 83%-94% energy-efficiency levels make Noritz tankless water heaters much more eco-friendly.

LASTS LONGER

Noritz tankless water heaters are extremely durable, lasting longer than traditional tank-type water heaters, and requiring little maintenance over its lifetime. They are also extremely well designed. If for some reason it needs to be serviced, any single part of the heater can be replaced and fixed. Noritz wants you to feel comfortable with our tankless water heaters so we back them with one of the best warranties in the industry.

Gelt Inc. In Search of the Perfect Agricultural Property To Acquire

2010-12-11T10:42:00.001-08:00

We have been all over Central and Southern California in search of the perfect farm to acquire with our international investors. Yesterday the Gelt Inc. team was at it again. We visited a citrus and avocado farm, and a floral greenhouse operation.

We are all learning so much about the agriculture business. Like any business, there are the effects of supply and demand on the price of the product. Also, growers have to take into account temperature, water sources, soil alkaline level, employees, land prices, competition, and all kinds of other factors that come into play.

It was our first time entering a greenhouse and we felt like we were in paradise. Our favorite flowers were the brightly colored Gerber Daisies. We learned about how the flower crops have changed over the years because of intense competition from Central America especially Columbia. Most of the roses that you purchase come from Columbia.

The flower business is most profitable when arranging bouquets to sell to supermarkets, flower shops, and other retailers. There is also a large wholesale business where the products are sold to nurseries.

It was interesting to learn that most of the technology for the processing of the flowers have come from Israel. From intricate drip systems to the fertilizer that is used, Israel has cutting edge technologies to increase the yield of the crops.

We still have lots to learn before we acquire an agricultural property. Most likely we would have a professional run the operations for us while we oversee the investment.

Recently there has been a surge in the price of farmland nationwide. Commodity prices have gone through the roof due to the large demand from China for worldwide production of soybeans and corn. Cotton has also hit an all time high as well. These higher prices will eventually be passed down to the consumer in the form of higher prices for clothing (that uses cotton), and higher prices of meats (farm animals eat corn and other crops for feed).

Keep following the blog to see which farm we acquire in the near future.

Gelt Inc. Explores Farmland

2010-12-05T18:40:00.000-08:00

Gelt Inc. recently visited a large farm in Bakersfield, California hoping to find the next big opportunity. Over the past few weeks we have been learning as much as we can about farmland. However, all of our research and reading was nothing compared to our experience of physically being on a farm and how much we learned from a real life farmer.

We learned so much talking to the local farmer that had worked on the farm for over 40 years!

The farmland we visited is currently fallow and has not been in use for the past 2 – 3 years. It was previously purchased by a land speculator from Las Vegas who had intended to build a new town in this location and was banking the land for future development. This means that the pumps that draw water from the wells that service the farm have been idle for this time. Pima cotton may be the best crop at this time due to the speed in which you can get a harvest and the price of cotton today. In addition, the cotton seeds are used to produce cotton-seed oil.

At Gelt Inc. we are looking to diversify into other profitable ventures like farmland, hotels, and retail properties. Stay tuned to hear about all the exciting things that are happening at Gelt Inc.

Gelt Inc. Closes 25 Unit REO Apartment Complex in Bakersfield

2010-12-04T19:07:00.000-08:00

Last week we closed on our 25 unit REO apartment complex in Bakersfied, CA. This particular apartment complex happens to be up the street from Vernon Vista, our 78 unit complex. We purchased this property all cash with a quick close. This enabled us to get the best price possible. We have begun doing the rehab with Damian being on the ground and Evan and I working out of the office on marketing strategies, investor relations, and taking care of the rest of our portfolio.

The Columbus Street apartments we purchased are a great quality asset that we purchased at a rock bottom price. We view these apartments as a great less expensive rental alternative to Vernon Vista. Already, in the one week that we have owned the property, our on site manager at Vernon has sent seven prospective tenats over who didn't want to pay the higher rents at Vernon.

The bones of the 25 unit property are very good. It is a courtyard style with all two bedroom flats except the manager's unit is a one bedroom and the unit next to the laundry room is also a one bedroom unit.

The property is a bit sleepy and needs some exterior upgrades. The first thing we do on a property is to fix the health and safety issues. We do not want anyone getting hurt on our property. We are fixing some cracks on the sidewalk so no one trips. Also, there is a steep drop in the back parking lot that we will be fixing as well.

A major problem on the property was that the tenants had to wait a long time for hot water in the mornings when showering. This was the main complaint we got from tenants when we did our inspections and walk throughs. The reason for this is that property runs on two central boilers. The farther your unit is from the boiler, the slower it is for the hot water to reach you.

We will be installing new hot water heaters and a new circulating pump that will solve this problem. We will now be saving water because the tenants will not have to wait so long for hot water. Also, this will make the tenants much happier.

Another major issue on the property is security. We will be installing a gate in the front of the complex to allow only the residents who have a key access. Also, we will be raising the heights of the back gates to prevent people from jumping over. The parking lot will be lit up much brighter for tenants to feel safe when they come home after work when it is dark. We will also be installing security cameras with visible signs that state the property is being montitored by video surveilence twenty-four hours a day, seven days a week.

We will be adding a large monument sign that the property currently does not have. Street exposure is vital due to the fact we are on a major street. Most of our traffic will be drive by's. Also, attractive flags will be added to the existing flagpoles that are bare. We plan on marketing heavily on the Bakersfield College campus which is a few minutes drive away and Craigslist as well.

In order to get the highest NOI (Net Operating Income) on the property as possible, we will be upgrading the vacant units and the units as they turn with upgrades such as faux granite countertops, tiling, modern appliances, upgraded bathrooms, and much more. We will do this work for an agreed upon budget and make sure that the money we are spending on the units will be sufficiently recouped by being able to charge a higher rent. This is a very fine line process. Overupgrading the unit and not being able to receive a proportional increase in the rent is not good.

We plan on also offering free cable and free wifi eventually on the property. We need to distinuish our property from our competitors who line the street that we are on. When driving by all these apartments, people have to want to come to ours because of our vast amount of amenities, friendly staff, great upkeep, and safe living.

We know that we purchased this asset at a dirt cheap price and our investors will make a lot of money in the long run from appreciation and cashflow.

Bakersfield Expansion

2010-12-02T08:37:00.000-08:00

It has been around two years since we acquired our first fourplex in Bakersfield, CA and now we own 217 units. We have rapidly expanded in the Northeast, but we are now focused on acquiring apartment units in the Southwest region. Look out for 2011 for a rapid expansion into these territories.

Gelt Inc. is researching other markets as well to begin investing in. Next week we will be taking a trip to Phoenix, AZ where the local economy has been decimated over the last few years. However, we like to stick to the age old adage of "buy low" and "sell high." If the overall economic fundamentals can improve in Phoenix, we might see a great turnaround and gain if we position ourselves with the right assets there.

Keep posted for rehab pictures of our 25 unit acquisition on Columbus Street in Bakersfield as Damian is doing some serious repositioning and rehab on that property!

Learning From Experience - Keys to Success

2010-11-24T09:24:00.001-08:00

At Gelt Inc experience is the most valuable commodity, which is why we take great care to review each transaction thoroughly to learn from our mistakes and success. Below are some helpful tips that we have learned during escrow from our most recent apartment escrow:

Don't be afraid to move quickly. A quick due diligence period may be a benefit. If you are able to complete your work quickly and efficiently, the seller will notice your professionalism.
Money is made on the buy side. Take an honest look at the contract price given all you have learned in the due diligence period. If the price now seems too high for the deal to make sense, do not be afraid to back out. The money and time spent on inspections will
Professionalism works. If you ask for a price adjustment, be sure to prepare a thorough report that includes photos and written description of any issues. You may even include professional bids for any major repairs that you have collected.
Learn from people. Each tenant in a commercial property may be able to hint at major issues. For instance, when tenants on a certain side of an apartment building told us that their hot water took 10-15 minutes to heat up, we knew that there was no hot water circulating line or the pump may be broken. On another occasion a tenant informed us that during heavy rains water sometimes leaked into their unit in certain places, which alerted us to some trenching and drainage work that was needed on the side of the property.
One wire is cheapest. When wiring money to escrow, make sure that you have the very finalized closing statement detailing the correct amount. It may be smart to wire a few thousand dollars more than needed as last minute change and unexpected fees can cost an extra wiring fee. Don't worry, any overage will be returned by escrow.
Keep it simple. There are many different forms and regulations that escrow companies must abide to in certain situations that may be be applicable to your funding structure. For instance, if you are raising money to finance your acquisition, the lender(s) that you syndicate may not be as strict in their requirements as a commercial lending institutions. Have a conversation with the private individuals lending on a first trust deed and their lawyer to discuss what paperwork is needed to make them conformable.
Keep your cool. Escrow can be a very stressful time; it is best to stay level headed and courteous no matter how what pops up. Many people will be needed to help the deal close so make everyone an ally with a confident and kind demeanor.
Make friends with Murphy. Murphy's law always prevails so be sure to expect the unexpected. Give yourself enough time to tackle these last minute surprises by planning ahead. Plan to close escrow several days, if not a full week, before the deadline written in the purchase and sale agreement.

How to Find New Tenants During the Holidays?

2010-11-11T12:00:00.000-08:00

Apartment owners and managers across the country are gearing up for the slowest month of the year, December. In an effort retain high occupancy, Gelt Inc is busy thinking up creative new ways to attract tenants even during this off-season. As of now we have unit specific advertisements with 'act-now' discounts and holiday decorations.

We want to take this opportunity to ask all our fans and investors if they have any winter leasing tips. If you have any recommendations, please comment on this post or email: team@geltinc.com

Thanks!

Rehabbing Bernard St.

2010-10-30T14:11:00.000-07:00

We are almost complete with our rehab of our third fourplex in a row on Bernard St. in Bakersfield. This was one of our most challenging fourplex rehabs yet. We took a building on that was a short sale and we inherited four tenants that were not paying any rent. A few of the units were in really bad shape. However, with the help of Damian overseeing the rehab and our great ground crew, we were able to do a full rehab on the interiors of the units within five weeks! We are budgeting already for next year to give a face lift to the entire exterior of the property by painting all three fourplexes and fixing the back parking lot. Keep an eye out for any posts on this property because we will be doing a lot of work on increasing the value and desirability to live on the three Bernard St. fourplexes.

Our trusted workers

Damian, Evan, and Keith all in front of the three Bernard St. fourplexes

Tenant Retention

2010-10-30T00:09:00.000-07:00

We go the extra mile at our properties to ensure the tenants are happy to live in our communities. This Halloween we are having a coloring contest for all of the children on the property. Here are some of the children's creations. We add personal touches like this to make the tenants feel at home.

Monthly Newsletters

2010-10-28T10:29:00.001-07:00

Every month we make sure our property managers create a nice colorful and informative newsletter for our tenants. This is just one sample of our latest newsletter at Vernon Vista. The monthly newsletters help foster a sense of community. We want all of our residents to feel at home and content with their management company, property, and neighbors.

Bridgemont Terrace Coming to Life

2010-10-25T20:29:00.001-07:00

We have been going up weekly to Bakersfield to monitor the progress of Bridgmeont Terrace. The property is starting to really shine and is looking like like new. The painters have completed painting buildings #6, #5, and #4. They are working on building #3 and should be completed with #2 and #1 in the next two weeks. Rain has delayed work the past few days but we are keeping on schedule with our rehab.

The grass is now clearly looking greener and healthy again after the winter rye treatment.

Tony, our day porter was here this morning cleaning the pool bathrooms and ground areas. Things are looking very good! Our steadily shrinking vacancy rate and our strong tenant retention are all great signs that we are slowly nurturing this property up to speed.

RealShare Apartments 2010

2010-10-22T10:24:00.001-07:00

Gelt Inc. was fortunate enough to attend RealShare Apartments 2010(hosted by www.almevents.com) at the Westin Bonaventure in Downtown Los Angeles. Multi-family big name players, including representatives of major REIT's, brokerage firms, private investors, vendors, management companies, appraisers, and a slew of private, government, and institutional financiers, were all present for this highly anticipated conference. A record breaking 1,100 people attended the event and the topics included:

One Year Later - Apartment Market Update
A Bird’s Eye View— Is Multifamily Tenancy Out of the Woods?
Multifamily Investment Momentum: Can it Continue?
Financing Fundamentals: New Lenders Open Their Wallets
Property Management Takes Center Stage
Distress Chess Match: Who's Move?
Industry Leaders
In the Brokerage Trenches—the In's and Out's of Getting Deals Done
Breaking Ground—Where the Action is

The sentiment was very optimistic for the apartment sector as a whole. Transactional volume is up largely due to the attractive financing of Fannie Mae, Freddie Mac, and HUD. This financing, along with strong industry fundamentals, has contributed to a recent compression of cap rates in both core and tertiary markets. The competition for a limited number of distressed assets is fierce, and information for all properties is more widely available because of the internet.

Bernard Street Rehab

2010-10-11T12:19:00.000-07:00

We recently acquired the third of five fourplexes in a row on Bernard Street in Bakersfield. All twenty units used to be owned by one prominent family in Bakersfield. During the housing boom they split up the property into five different parcels and sold them individually, thereby increasing the total amount they could get for the property.

Each of these fourplexes sold at the height of the market for approximately $400,000 a building. We are now sniping these as REOs or short sales at around $120,000 cash per property. At these low prices are able to fix up the properties (they have been neglected for the last few years due to owners that got themselves way over their head with payments.

This third out of the five fourplexes on Bernard was in the worst shape of all of them. The unit you will see next was actually the worst unit of the four. However, at Gelt Inc. we know how to rehab units inexpensively, quickly, and with beautiful style. Take a look at these pictures (before and afters) as the pictures speak for themselves!

Bernard Street from the rear

Bernard Street from the side

Living Room Before

During Rehab

Kitchen During Rehab

Kitchen During Rehab

Entrance During Rehab

A Work in Progress

Entrance Before

Hot Water Heater Before

Kitchen in Progress

Kitchen After

Kitchen After

Bathroom After

Hot Water Heater After

Cabinets Before

Cabinets After

Living Room After

New Colors For Bridgemont Terrace

2010-10-11T10:56:00.000-07:00

Today we will be finishing up painting the floors on the second story decks and the inside of all the bottom patios this week on building #5.

It looks like a new building. Tenants have already told Yvonne (our amazing onsite manager at Bridgemont) that they love the new colors! Other tenants are now asking when their building is going to get the new look.

Once we do the landscaping this property is going to shine! Stay tuned for some big announcements from Gelt Inc. in the near future!

Selling a fourplex and a triplex

2010-10-04T19:14:00.000-07:00

We are currently in escrow on both our L. Street fourplex and our Pearl Street triplex. These are the first assets that we will have sold. We received two offers that we couldn't refuse. We will be using these funds to pay back our investors and use the profits to work on Bijou Bazaar. Take a look at this picture of Keith at the Bakersfield Chicago Title Office with the notary signing the grant deeds.

Tenant Retention and Tenant Satisfaction at Bridgemont Terrace

2010-09-27T14:53:00.001-07:00

A current tenant of ours who has been living at one of our complexes in Bakersfield for a few years spoke with our property supervisor three months ago and asked for a reduction in rent because she believed she was paying more than others and her lease was up. Our property supervisor extended her lease three months but did not lower her rent.

Today this tenant walked into the office to speak to our on site manager about extending her lease for 12 months at her CURRENT rent.

What caused such a turnaround for her? I bring this up because the tenant applauded the management style and the upgrade of the grounds at our complex. She said that although she could find another place that was a bit cheaper she felt our complex was the cleanest and best managed in the area and she would pay a premium for this service and for our amenities.

Our constant attention to detail and to try our best to provide our tenants with the safest and most respectful living environment has paid off.

This is a very good sign and means that we are doing all the rights things to ensure our apartment complexes are safe and well managed for our tenants.

Since acquiring the property we have cut the vacancies in half, increased renter satisfaction, increased renter demand, and created a higher level of tenant retention.

In a couple of weeks we will be having a raffle, giving turkeys away for Thanksgiving, and a brand new Apple iPad to one lucky person! (We had a raffle for this item, and to be included in it you had to sign a lease since we took over or refer a friend).

Our property managers and property supervisors have done an excellent job managing this property and making it a success. With Adrian's suggestions and our team's attention to detail during the weekly conference calls and weekly visits to the property, we have turned this property around completely, and in the process added a lot of value to us and our investors.

To hear that a current tenant is willing to stay here and pay a premium to market rate is a testament to everything we are doing. Good job everyone. Lets keep this ball rolling.

The Inland Empire

2010-09-17T12:14:00.000-07:00

Gelt Inc. has ventured to the Inland Empire in hopes to find a diamond in the rough! Keith Wasserman, Adrian Goldstein, and Evan Rock have all made trips out to San Bernadino, Riverside, Moreno Valley, Redlands, Highlands, and Ontario within the last week. We think that rents have hit rock bottom in this market and we intend to take advantage of the various institutional grade and 1980's or younger apartment complexes being sold by REIT's looking to leave this area or banks looking to offload REO's.

Looking for distressed deals in the Inland Empire is not too difficult; a number of large properties have been listed by the top brokerage firms. We have seen buildings with vacancy up to 30%, neglected landscaping, and major deferred maintenance in several properties. We have also seen institutional grade properties built on golf courses that are less than 5 years old. In our analysis we are focusing on learning the local economy and street by street demographics. We try to find properties adjacent to schools, golf courses, retail, and other public amenities, which helps assure a certain intrinsic value in the land.

If you are a broker who has an Inland Empire property for sale over 70 units, please call our acquisitions office at 818-676-9362.

Bridgemont Terrace: A Transformation In Progress

2010-09-15T13:53:00.000-07:00

We knew when we purchased Bridgemont Terrace that we were going to have our work cut out for us. After months of hard work and perseverance, we have finally got the property up and running more efficiently and in much better physical shape. When we acquired the property there were large areas of termite damaged wood, a dilapidated parking lot, trip hazards galore, and a lot of other serious physical issues. There were also a large number of tenants not paying rent.

With our proactive and hands on ownership strategy, we dealt directly with the management company to evict all of the non paying tenants. These deadbeat tenants have been replaced by good hard working Bakersfield residents.

Regarding the physical plant issues, we began by attacking the parking lot first. We needed to replace the entire parking lot as its time had definitely come and gone. It was no longer safe to walk and drive over due to the multiple trip and fall areas and the overall erosion. We got multiple bids from multiple contractors. We then proceeded with a full overhaul of the old parking lot. We restriped it and added additional handicapped stalls to remain ADA compliant. The new product looks fabulous and all the tenants really appreciate it. Thanks to Damian being on the property during this entire rehab process, all of the work was done in a timely manner and in the most cost effective manner possible.

We are in the process of adding barbecues to the property by the pool. Barbecues are a great amenity to have. We have also added wireless internet to the property for tenants to use when they are by the pool area and leasing office. All in all we have made Bridgemont Terrace a safer and more desirable place to live, all the while keeping rents affordable.

At Gelt Inc. we do traditional paid advertising and also guerrilla advertising as well. We purchased a dozen flags for the property, ordered a free rent sign, added an entire model unit fully decorated and furnished, and decorated three or four of the vacant units with picture frames, flowers, good smelling candles, and other inviting objects.

Keith hit the streets going to all the local churches offering them reciprocating donations if they referred us tenants. Also, Evan and Keith went to the local college campus (Cal State Bakersfield) and distributed fliers with coupons for three months of free laundry and $250 off their first month's rent).

We will be raffling off a brand new iPad at the end of this month as well. All contestants in the raffle have signed a lease at the property since we acquired it, or have referred a friend who has signed a lease.

Keep checking in with our blog to find out more about our current projects and multiple projects we have in the works.

Advertisements for Bridgemont Terrace & Vernon Vista Apartments

2010-09-12T23:25:00.000-07:00

We have here a full page color advertisement in the Rent Fit magazine in Bakersfield. These are the free magazines that are distributed at gas stations, convenience stores, supermarkets, etc. all throughout the city of Bakersfield. We are advertising here both of our larger apartment complexes. It is convenient that we offer one complex in the Northeast and one in the Southwest of Bakersfield. Both of our properties are conveniently located to major shopping, offices, and both major college campuses in Bakersfield.

ULI Event Featuring Trigild

2010-09-09T17:18:00.000-07:00

The other day Keith Wasserman and Damian Langere of Gelt Inc., and Gelena Skya of Grubb & Ellis went to an event put on by ULI featuring Trigild.

We learned a lot about the process of receivership and what a receiver does. Trigild briefed us all on the status of the real estate market.

They believe that there is a lot of more hotels that will be coming into receivership. Other asset classes are being hit hard as well and we should be seeing more assets coming back to lenders.

A receiver generally deals with brokers when selling a property on behalf of the lender. They are put in place by the courts in order to preserve the value of the asset and to prepare the property for its ultimate sale.

In some cases, Trigild was able to significantly increase NOI for properties they managed and were able to sell them at a much higher price then projected.

A receiver has to be an individual. They do not have to be a licensed real estate broker. Anyone can become a receiver.

Recently, Trigild disposed of a portfolio of over a thousand apartment units in Arizona. They have handled all classes of real estate in the past and have years and years of experience in thier field.

Rental Rate Analysis

2010-09-02T09:59:00.001-07:00

At Gelt Inc. we are active owners, which means we oversee all major decisions made by the management company. For instance, every quarter we review the in-place rents to determine our policy towards existing tenants who have expired leases. To make this easier, we created a spreadsheet showing how many units are rented at each different rental rate. We then determined how much extra rent would be gained per month from both moderate and aggressive rental increases. Our expenses go up every year, which is why we must maximize the amount of rent collected while retaining as many longtime tenants as possible.

Gelt Inc. Israel Event

2010-08-23T18:21:00.001-07:00

Gelt Inc. Israel Event

The above advertisement is being published in six Israeli newspapers for the following ten days.
The event will feature Monte Silver, Gelt Inc.'s Israel President and outline the following:
1. Overview of US real estate market and types of investments opportunities.
2. Legal aspects for investors (The Israel firm will present Israel law aspects, but the key US issues are: who holds title, some aspects of investor control, protection and oversight, drop dead dates for sale of property).
3. Financing.
4. Prospective properties that are on Gelt Inc.'s radar.