Attention to Detail.

As with most real estate sponsors, Gibraltar follows a six-point formula
in structuring an investment strategy. We attempt to:

1. Locate well-placed properties
2. Analyze their investment potential
3. Acquire the best of these under favorable terms
4. Improve the properties under management
5. Increase rental and lease income, and
6. Negotiate favorable sale terms at increased value

Gibraltar adds to this strategy a goal of doubling a client’s original investment capital within a reasonable period. We have consistently surpassed minimum projections-primarily because we pay meticulous attention to the details of acquiring and managing prime investment assets

“Anatomy of a Successful Investment”

Understanding the Investment Marketplace.

It is difficult to overestimate the value and impact of market knowledge on an investment. Individual investors who lack adequate knowledge should either acquire the knowledge-or employ the services of a qualified professional-before making an investment decision.

Knowledge is equally important to professionals-who can succeed or fail based on their ability to (1) understand the investment marketplace, (2) anticipate and adjust to changes in that marketplace, and (3) judge the effect of overall economic trends on specific types of investment.

Interest rates, tax, laws, supply and demand, market stability, inflation and other economic trends…there are a host of volatile market factors that exert a profound influence on investment performance. Given these vagaries, it is important to find investment products and structures that afford maximum stability over time – and enough flexibility to meet diverse investment objectives under a wide variety of market conditions. Overall, real estate investments meet these criteria.

Real Estate Investments.

Because real estate is tangible commodity with intrinsic worth, its investment value is largely independent of the cycles that affect many other forms of investment. Studies show that real estate has generally performed well-yielding highly stable returns over time-especially when demand, location and timing factors are accurately assessed.

Real estate offers a greater variety of potential financial benefits than any known investment. These include capital growth, equity build-up, depreciation to offset rental income and leverage-or the ability to control assets worth considerably more than the capital invested. And real estate sponsors are able to structure their investment in ways that minimize investor risk.

Prudent investment would demand diversification within a given portfolio. But-given its advantages as an investment-real estate should have a strong presence in any diversification plan. The key is finding a competent and knowledgeable sponsor who demonstrates an ability to take advantage of market conditions-and offers an investment structure that will meet your specific goals.Introducing Gibraltar.

It is no accident that our corporate name was chosen to reflect the stability of Gibraltar’s rock. We feel that a real estate asset-wisely acquired and properly managed-offers greater stability and security than any other form of investment. We also feel that our market knowledge and approach to investment give us the ability to structure a real estate investment profitably under any market conditions.

We invite you to discover Gibraltar. The information in this website will show you a small, dynamic firm-which conducts its business with an uncompromising, hands-on approach. This approach includes a unique, painstaking analysis of properties being considered for acquisition. It also includes managing real estate assets as separate businesses, with personal involvement by Gibraltar’s principals.

If you are considering a real estate investment, we encourage you to read materials from other real estate sponsors and to be thorough in your research. An investment relationship is a long-term proposition. It is important to find a sponsor with whom you are comfortable.

It is also important to find sponsors who can provide results. We feel very confident in this area. Photographs and descriptive summaries of various Gibraltar Properties appear throughout this website. Our performance has prompted investors to invest significant dollars with us on a repeat basis. And they are willing to provide references upon request.

“Identifying and Acquiring Prime Assets.”

The Acquisition Imperative.

Profitability in a real estate investment usually demands the effective
performance of all primary investment functions. We believe, however,
that Acquisition functions exert the heaviest influence on ultimate profitability.

These include:

1. Locating properties with favorable investment features
2. Analyzing the properties for potential
3. Selecting the property best suited to achieve our investment
   objectives, and
4. Acquiring this property under the most favorable contract terms.

Locating Properties.

Locating potential assets is not difficult. Gibraltar is part of an active
communications network involving brokers, program sponsors and other
real estate professionals. We receive hundreds of mailings and calls
each month from brokers and individuals with property for sale in our
market area. We also identify properties through field research and
personal contacts. To make the first cut, any property must be of a
certain maximum age and meet certain minimum architectural quality
standards.

Programmed Conservatism.

The next step involves an extremely thorough analysis that includes five-year
projections for every expense and income item related to acquisition.
This analysis is based on Gibraltar’s own computer programs-which effectively
focuses the accumulated acquisition experience of Gibraltar’s management
principals into a computerized screening process.

Through experience, we know that real estate trends, federal, state and
local taxes and economic cycles will change during the life of a Gibraltar
investment. We have biased our analysis programs to reflect this knowledge.
Computer projections for income and appreciation, for example, are quite
conservative. There are extra, built-in allowances for vacancies and
expense. The end result is an informed appraisal of profitability-performed
with computer precision, tempered by conservatism and professional instinct.

The result is deliberate selectivity. Generally, Gibraltar acquires
only one out of every fifty properties that goes through a complete analysis.

Leasehold Analysis.

At the heart of Gibraltar’s computer programs is a sophisticated methodology
for “leasehold projection analysis” – i.e., working all income and expense
aspects of tenant leases in to comprehensive five-year projections. Information
learned through this analysis is helpful not only during the acquisition
process, but also when we write or rewrite tenant leases for our properties.
Working with tailored and comprehensive lease contracts is another important
aspect of real estate management.

Projection analysis of income aspects includes lease terms, base rate
per square foot, annualized income, and rent yield per square foot and
so on – as appropriate to the property, residential or commercial.

Projection analysis for expense aspects is especially critical to the
success of the investment. We include taxes, insurance, utilities, repairs
and maintenance, service contracts, administrative, and management costs,
leasing commissions, tenant improvement costs, etc. (various expense
projections we’ve reviewed from outside sources don’t usually include
leasing commissions or tenant improvement costs-which generally amount
to substantial dollars over the investment period).

We also allow for intangibles-factoring in expense figures for type
of tenant use, local market conditions, energy cost forecasts, etc. While
we do look at expense history of the property, we know that our income
and expense factors will be different.

Physical Analysis.

Before making a final decision on any property, Gibraltar brings in engineers
and mechanics to investigate all key structural elements. Our goal is
to turn up deficiencies prior to final acquisition.

Profit Analysis.

We now have developed a profile of all income and expense information-projected
over five years. Next, we project distributable income, ongoing tax consequences
and estimated proceeds from sale-based on increased value. The result
is a forecast of cash flow, capital gain and after-tax gain from sale.

If the forecast indicates a doubling of investment capital within a
reasonable time, the subject property qualifies for Gibraltar investment
sponsorship. All that’s left is negotiation of favorable contact terms.