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This profile was last updated on 3/21/14  and contains information from public web pages and contributions from the ZoomInfo community.

Mr. Jules Reich

Wrong Jules Reich?

Chief Executive Officer

Local Address: Great Neck, New York, United States
Somerset Investors Corporation
 
Background

Employment History

11 Total References
Web References
But until a "White Knight," Jules ...
cooperator.com, 21 Mar 2014 [cached]
But until a "White Knight," Jules Reich, chief executive officer of Somerset Investors Corporation (SIC) of Great Neck, New York showed up, the place was run-down, vacant units were a mess and could not be rented, and about 300 shareholders faced the loss of their equity.
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"First you have to take out the broken furniture and such that was left," says Reich. "Then, without remodeling–we’re talking new carpet, plaster and paint–$4,000 to $6,000 can be spent in a heartbeat. People in the co-op can’t cover maintenance payments on those apartments, that is, the sponsor’s maintenance, plus the refurbishing costs and so on."
Between 1992 and 1999, the co-op restructured its debt with the lender three times. The downside to that was, each time the lending institution agreed to lower the interest rate, the difference was accrued, increasing the back-end debt. Finally, the co-op’s bank called on Reich, and offered to sell him the underlying mortgage at a discount provided he agreed not to foreclose on the co-op. Reich was amenable, and proceeded along with SIC’s In-House Financial Analyst Jeffrey Bookman to work out a plan that not only saved the co-op and allowed for major renovations, but actually lowered maintenance payments.
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Reich was able to buy the mortgage of $12.8 million debt for $8.2 million.
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"We were able to make a win-win situation," says Reich.
"If there are five seats on ...
cooperator.com, 6 July 2012 [cached]
"If there are five seats on the board, he can designate three for himself," says Jules Reich, president of Somerset Investors in Great Neck, N.Y. "Generally speaking, although the sponsor may have the final vote on things, it would be unproductive for him to operate this way. The best idea is for the sponsor and the board to work together in the best interest of the building and its residents."
While the sponsor decides just how many units he or she will sell, that percentage is often dictated by other mitigating factors, including the fact that many buildings have a certain number of rent-regulated units. A sponsor is not legally allowed to remove those tenants from the building and cannot take possession of their units. "Rent-regulated tenants have the right to hold on to their property in perpetuity," Reich says. "A couple of our buildings still have people in them from the 1980s," Reich says.
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"The biggest thing is that people have their own agendas," Reich says.
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"Shareholders might blame the sponsor who converted the building for leaving it in poor condition," Reich says.
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"Because the sponsor doesn't need board approval, he might put some people in his apartments who might not otherwise be approved by the board," Reich says.
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"Too often when shareholders get control, they think the management has been taking advantage of them because they've been under the control of the sponsor," Reich says. "That's rarely the case.
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"Usually, they'll sit down with the co-op attorney, who is generally a fair-minded individual, and talk things out," Reich says. Other times, they'll turn to a professional mediator. "But both sides have to agree to accept the mediator's decision." If mediation fails, the two sides often will turn to the courts. Reich argues that everything possible should be done to avoid lawsuits, which he calls "very expensive and very, very time consuming."
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"In a weak market, people are always unhappy," Reich says. "In a strong market, no one ever complains. It's as normal as breathing."
Working together will pay off for everyone involved, from the sponsor to the board to the residents. "If you have a situation where the board and sponsor work together, you can accomplish more for less money and get better results," Reich says.
This was the bleak situation into ...
cooperator.com, 5 Nov 2013 [cached]
This was the bleak situation into which Somerset Investors Corporation and its CEO, Jules Reich, stepped.
Jules really was a white knight, says Elizabeth Hammann, a real estate management professional who, as board president, had been partly responsible for bringing Reich aboard. Jules really was a white knight, says Elizabeth Hammann, a real estate management professional who, as board president, had been partly responsible for bringing Reich aboard.
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Reich is also a principal of Live Right Realty, which was founded with Hammann and Randy Starr, another 302 96th Street board member-turned-manager, in 1994.
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Immediately upon his arrival two and a half years ago, Reich lent the co-op money to complete much-needed structural repairs including waterproofing, roof and parapet work, sidewalk repairs and electrical upgrading. Cosmetic improvements were also made, including hallway refurbishment, restoration of the lobby's terrazzo flooring, and reconstruction of the entryway stairs. Reich turned the property's financial condition around to the point where the 1995 certified financial statement shows the property operating in the black. So far, his investment in the co-op totals almost $200,000.
Jules went above and beyond the obligations of an investor, says Hammann.
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I consider Jules Reich a friend of mine. We would have lost everything if not for him.
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Time was of the essence in October 1995, when Reich and Somerset senior vice president Jeffrey Bookman came to the rescue of the 60-unit cooperative at 70 Clark Street in Brooklyn Heights.
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Again, Reich immediately invested heavily of his own money to enhance the building's valuein this case, to the tune of about $250,000. He upgraded the electrical system, made necessary external structural repairs, installed new mailboxes, and refurbished the public hallways. He also resolved the pending litigation against the property to everyone's satisfaction.
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Before Jules stepped in, I was beginning to feel trapped financially; our audited financial statement contained the opinion that we would not be a going concern. We won't have financial statements that reflect our involvement with Jules until later this summer, and we can't consider selling units until then. But, I expect that we'll look like a very good investment. Jules has had an amazing impact.
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In April 1995, Reich and Bookman stepped in and, reducing the co-op's mortgage by half, allowed for a reduction in maintenance charges.
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Here, Reich invested almost $1.6 million to pay off the property's indebtedness and perform capital repairs. He is also currently serving as the co-op's managing agent through Live Right Realty.
Reich made structural and cosmetic improvements to the property, negotiated a better laundry room deal for us, did some major landscaping, and repaved our driveway, which had a major flooding problem, says Capella.
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Mr. Reich and Live Right Realty have done marvels for the building.
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For the last six years, Epps has been the condo's managing agent through his company, PDX Management, which Reich has retained to manage his recently-purchased units.
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Jules Reich paid very serious dollars, says Epps.
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It's too soon to tell how overall re-sale values at Regents Park Gardens Condominium have been affected by the presence of Jules Reich, Jeffrey Bookman, and Somerset Investors Corporation.
TIGER 21 | Presenter Detail
www.Tiger21.com, 30 Nov 2008 [cached]
Jules ReichTIGER 21 | Presenter Detail
...
Jules Reich
Chief Executive Officer, Somerset Investors Corporation
Mr. Reich is CEO of Somerset Investors Corp, which he formed in 1979.Somerset is a privately owned real estate firm, dedicated to the purchase and financing of residential real estate.Somerset has participated in the funding of loans with a dollar total amount of approximately $500 Million.He is a licensed New York real estate broker and licensed mortgage banker in the State of New York.His management company, Live Right Realty, manages residential properties in the New York area.He is co-owner of Century 21 Best located in Queens, New York.
TIGER 21 | Presenters
www.Tiger21.com, 31 Jan 2007 [cached]
Jules ReichTIGER 21 | Presenters
...
Jules Reich
...
Mr. Reich is CEO of Somerset Investors Corp, which he formed in 1979.Somerset is a privately owned real estate firm, dedicated to the purchase and financing of residential real estate.Somerset has participated in the funding of loans with a dollar total amount of approximately $500 Million.He is a licensed New York real estate broker and licensed mortgage banker in the State of New York.His management company, Live Right Realty, manages residential properties in the New York area.He is co-owner of Century 21 Best located in Queens, New York.
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