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The Venetian

100% Cumulative Return to Investors

Location: Bakersfield, CA
Property Type: Multifamily
Number of Units: 25
Acquisition Date: November 29th, 2010
Status: Sold by Gelt

Gelt acquired the 25-unit Venetian Apartments located in Bakersfield, CA on November 29th, 2010 as an REO from a small Orange County based bank. The property had previously sold for $1,750,000 in 2005. Gelt purchased the property for $900,000 with a $550,000 private money loan. A total of $450,000 was raised as equity. At acquisition the property had seven vacancies and well below market rents. The property had severe deferred maintenance and was poorly managed by the receiver in place. Tenants were very frustrated with the management as they had not been taking care of their needs. Hot water took over ten minutes to be delivered at times because of the old boiler loop system that was in place. Tenants also complained about their safety on the property because of its open access to anyone at the time of takeover.

Gelt?s Plan Of Action:
Gelt understood the dynamics of this northeast sub market of Bakersfield having owned hundreds of other apartment units there and put in place a plan to upgrade all of the vacant units, in addition to the units with expiring leases in order to stabilize the rent roll and ultimately increase the rents on the property. An aggressive marketing campaign was adopted to change the image of this property

Gelt was quick to identify a great on-site manager named who would share in the same vision of improving the property and making it one of the most desirable local apartment communities. First and foremost, we worked quickly to address all life and safety issues. We installed a security camera system and controlled access system so only tenants could access the grounds. We tackled all of the deferred maintenance items on the property and underwent a significant capital expenditure program to upgrade both the interiors of the units and exterior of the property. Below are some of the specific upgrades and additions Gelt made to the property:

1). Significant upgrades to almost every unit interior resulting in a 30% increase in rental income on a per unit basis
2). Replaced antiquated boiler system with state of the art tank-less water system delivering instant hot water to all tenants
3). New collateral material and signage was created
4). Management office received significant upgrades resulting in a more professional and appealing environment for prospective tenants
5). Landscaping was improved to heighten curb appeal
6). Fascia was painted with new striking colors.
7). Two new barbecues were installed
8). A large gazebo was installed in common area by the pool
9). New pool furniture was purchased
9). Wood rot was repaired
10). Laundry room was totally renovated with brand new machines owned by property rather than third party resulting in increased laundry collections
11). Side of property that was sloped incorrectly that led to water intrusion was leveled
12). Property was gated and became a close accessed property
13). Bumper blocks were installed in back parking lot
14). Implemented a significant premium paid by Month-to-Month tenants to encourage them to sign a long-term lease

Gelt succesfully sold the property for $1.6 million, resulting in a 100% cumulative return for investors.

Gelt was founded by cousins Keith Wasserman and Damian Langere during the height of the economic recession and financial meltdown in 2008. Gelt?s business plan is to acquire and re-position value-add multifamily real estate investments.

Gelt is committed to providing investors with quality, cash-flowing investment opportunities and is seeking to acquire multifamily, retail, and mobile home park properties in the Western United States with an emphasis in California, Utah, Nevada, Arizona, Colorado, and Oregon.

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