U.S. SECURITIES AND EXCHANGE COMMISSION
                        WASHINGTON, D.C.   20549

                              FORM 10-QSB

(Mark One)

XX  QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
---  ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED MARCH 31, 2001

    TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
---  ACT OF 1934 FOR THE TRANSITION PERIOD FROM _______ TO ______.

                        COMMISSION FILE NUMBER 000-31143
                                               ---------

                                 GAVELLA CORP.
                              ------------------
         (Exact name of business issuer as specified in its charter)

            Delaware                             22-3742159
            --------                             ----------
     (State or other jurisdiction             (IRS Employer Identification
         of incorporation)                               number)

    215 West Main Street, Maple Shade, New Jersey   08052
    ---------------------------------------------- -------
    (Address of principal executive offices)     (Zip code)

    (856) 667-0600
    --------------
    (Issuer's telephone number)

Check whether the issuer (1) filed all reports required to be filed by
Section 13 or 15(d) of the Exchange Act during the past 12 months (or for
such shorter period that the registrant was required to file such reports)
and (2) has been subject to such filing requirements for the past 90 days)

Yes  XX      No
    ----         ----

The Company had 2,000,000 shares of common stock, par value $.001 per share,
outstanding as of May 3, 2001.

Transitional Small Business Disclosure Format (Check one): Yes [  ]   No [XX]


                                 -1-
<PAGE>


             GAVELLA CORP. AND SUBSIDIARY
                      INDEX
                                                            PAGE
PART 1.   FINANCIAL INFORMATION                             ----

      ITEM 1.   FINANCIAL STATEMENTS

                GAVELLA CORP. AND SUBSIDIARY
                ----------------------------

                CONSOLIDATED BALANCE SHEETS AS OF
                MARCH 31, 2001 AND DECEMBER 31, 2000...................3

                CONSOLIDATED STATEMENTS OF OPERATIONS AND DEFICIT FOR
                THE THREE MONTHS ENDED MARCH 31, 2001 AND 2000.........4

                CONSOLIDATED STATEMENTS OF CASH FLOWS FOR
                THE THREE MONTHS ENDED MARCH 31, 2001 AND 2000.........5

                CONSOLIDATED STATEMENT OF CHANGES IN
                STOCKHOLDERS' EQUITY FOR THE THREE MONTHS
                ENDED MARCH 31, 2001 ..................................6

                NOTES TO CONSOLIDATED FINANCIAL STATEMENTS.............7-8


      ITEM 2.   MANAGEMENT'S DISCUSSION AND ANALYSIS...................9

PART II.  OTHER INFORMATION............................................13

               ITEM 6    EXHIBITS AND REPORTS ON FORM 8-K..............13

      SIGNATURES.......................................................14



                                 -2-
<PAGE>

<PAGE>
                      GAVELLA CORP. AND SUBSIDIARY
                       CONSOLIDATED BALANCE SHEETS
                   MARCH 31, 2001 AND DECEMBER 31, 2000
                               (Unaudited)

                                  ASSETS
                                                March 31,        December 31,
                                                  2001                2000
                                               -----------        -----------
Rental property, net                           $ 3,191,804        $ 3,219,984
Cash                                                84,647             91,310
Cash held in escrow                                 72,114             37,123
Accounts receivable                                 14,419             15,388
Prepaid expenses                                    23,979             53,494
Deferred financing costs, net                       56,091             58,251
                                               -----------        -----------
    Total Assets                               $ 3,443,054        $ 3,475,550
                                               ===========        ===========


                                LIABILITIES AND DEFICIT


Liabilities
  Mortgage notes payable                        $3,307,681        $ 3,317,649
  Notes payable                                    217,500            175,000
  Accrued interest                                  22,719             41,469
  Accounts payable                                  15,725              5,130
  Accrued expenses                                  23,338             22,462
  Security deposits payable                         76,790             76,965
  Other liabilities                                  9,266             11,656
                                               -----------        -----------
     Total Liabilities                           3,673,019          3,650,331
                                               -----------        -----------
Minority Interest                                      -0-                -0-
                                               -----------        -----------

Stockholders' Deficit
 Common stock, $.001 par value,
  3,000,000 shares authorized, 2,000,000
  shares issued and outstanding                      2,000              2,000
 Additional paid in capital                        207,500            207,500
 Accumulated deficit                           (   439,465)       (  384,281)
                                               -----------        -----------
   Total stockholders' deficit                 (   229,965)       (
174,781)
                                               -----------        -----------
     Total Liabilities and Deficit              $3,443,054        $ 3,475,550
                                               ===========        ===========

                                 -3-
<PAGE>
                       GAVELLA CORP. AND SUBSIDIARY
                   CONSOLIDATED STATEMENTS OF OPERATIONS
             FOR THE THREE MONTHS ENDED MARCH 31, 2001 AND 2000
                               (Unaudited)

                                                   2001               2000
                                                 -----------      -----------
Revenues
  Rental real estate                               $ 210,712      $   208,376
                                                 -----------      -----------
    Total revenues                                   210,712          208,376

Operating expenses
  Administrative expenses                             52,072           38,187
  Utilities expense                                   43,018           30,546
  Operating and maintenance                           32,179           26,435
  Taxes and insurance                                 32,697           31,286
  Depreciation and amortization                       31,241           29,544
                                                 -----------      -----------
     Total operating expenses                        191,207          155,998
                                                 -----------      -----------
Operating income (loss)                               19,505           52,378

Other income (expense)
  Interest income                                        619              652
  Interest expense                              (     75,308)  (      77,181)
                                                 -----------      -----------
      Total other income (expense)              (     74,689)  (      76,529)
                                                 -----------      -----------
Net loss                                        (     55,184)    (    24,151)
                                                 ===========      ===========



Basic net loss per share - pro forma            ($      .03)     ($      .01)
                                                 ===========      ===========

Average number of common shares outstanding -
  Basic - pro forma                                2,000,000        2,000,000
                                                 ===========      ===========

                                 -4-
<PAGE>
                       GAVELLA CORP. AND SUBSIDIARY
                    CONSOLIDATED STATEMENTS OF CASH FLOWS
            FOR THE THREE MONTHS ENDED MARCH 31, 2001 AND 2000
                               (Unaudited)

                                                    2001            2000
                                                 -----------     -----------
Cash flows from operating activities:
  Net loss                                       ($   55,184)      ($ 24,151)
  Adjustments to reconcile net loss to net cash
    provided by (used in) operating activities:
    Depreciation and amortization expense             31,241          29,544
    (Increase) decrease in:
      Accounts receivable                                969           7,446
      Prepaid expenses                                29,515)      (   3,166)
      Cash held in escrow                         (   34,991)          4,253
     Increase (decrease) in:
      Accounts payable                                10,595       (   2,421)
      Accrued interest                            (   18,750)            -0-
      Accrued expenses                                   876       (   2,438)
      Other liabilities                           (    2,390)          1,582
      Security deposits payable                   (      175)          1,150
                                                 -----------     -----------
Net cash provided by
   (used in) operating activities                 (   38,294)         11,799
                                                 -----------     -----------
Cash flows from investing activities:
  Purchases of property and equipment           (        901)    (    6,754)
                                                 -----------     -----------
Net cash used in investing activities           (        901)    (    6,754)
                                                 -----------     -----------
Cash flows from financing activities:
  Repayment of mortgage notes payable           (      9,968)    (     9,181)
  Proceeds from notes payable                         42,500           5,000
  Payments on notes payable                              -0-     (     1,117)
  Contributed additional capital                         -0-           3,000
                                                 -----------     -----------
Net cash provided by
 (used in) financing activities                       32,532     (     2,298)
                                                 -----------     -----------
Net increase (decrease) in cash                 (      6,663)          2,747

Cash, beginning                                       91,310          77,275
                                                 -----------     -----------
Cash, ending                                      $   84,647       $  80,022
                                                 ===========     ===========

SUPPLEMENTARY DISCLOSURE OF CASH FLOW INFORMATION

Cash paid for interest                            $   94,058       $  77,181
                                                 ===========     ===========

                                 -5-
<PAGE>

                       GAVELLA CORP. AND SUBSIDIARY
             CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' DEFICIT
              FOR THE THREE MONTHS ENDED MARCH 31, 2001 AND 2000

                                   (UNAUDITED)


<TABLE>
<S>                         <C>         <C>        <C>           <C>          <C>
                                                     Additional                    Total
                                 Common Stock          Paid-in    Accumulated  Stockholders'
                              Shares     Amount        Capital      Deficit       Deficit

Balance, January 1, 2001     2,000,000  $ 2,000    $ 207,500     $(384,281)    $174,781

Net loss                             0        0            0       (55,184)     (55,184)
                             ---------  -------    ---------    ----------     --------
Balance, March 31, 2001      2,000,000  $ 2,000    $ 207,500     $(439,465)    $229,965
                             =========  =======    =========    ==========     ========

</TABLE>





                                    -6-
<PAGE>

<PAGE>
                       GAVELLA CORP. AND SUBSIDIARY
                 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                         MARCH 31, 2001 AND 2000

                              (UNAUDITED)
Note 1 - Organization

     On June 21, 2000, Gavella Corp.  ("Gavella")  was formed for the
purpose of effectuating a spin-off of the real estate operations of APTA
Holdings, Inc. ("APTA").   APTA is a financial services holding company.
Through its subsidiaries, APTA was engaged in two lines of business: owning
and operating income-producing real estate, and the originating and servicing
of loans to businesses and consumers, generally secured by real estate or
other assets.

On August 7, 2000,  APTA transferred all of the assets and liabilities of its
100% wholly owned subsidiary, Spring Village Holdings, Inc. to Gavella in
exchange for 2,000,000 shares of $.001 par value Gavella common stock.   On
December 27, 2000, the common stock of Gavella was spun off to the common
shareholders of APTA.  Eligible APTA shareholders of record on December 1,
2000 ("Dividend Record Date") received one share of Gavella's common stock
for each share of APTA's common stock held on the Dividend Record Date.  On
December 27, 2000, 2,000,000 shares of $.001 par value Gavella common stock
were issued to eligible APTA shareholders.

Note 2 - Summary of Significant Accounting Policies

     The summary of significant accounting policies is included in the notes
to the consolidated financial statements for the years ended December 31,
2000 and 1999 which were audited and appear in the Form 10-KSB previously
filed by the Company.

Note 3 - Unaudited Financial Statements

     The consolidated balance sheets as of March 31, 2001 and December 31,
2000 and the related consolidated statements of operations, and cash flows
for the three months ended March 31, 2001 and 2000, and the statement of
changes in stockholders' equity for the three months ended March 31, 2001,
and the related information contained in these notes have been prepared by
management without audit.  In the opinion of management, all accruals
(consisting of normal recurring accruals) which are necessary for a fair
presentation of financial position and results of operations for such periods
have been made.  Results for an interim period should not be considered as
indicative of results for a full year.

Note 4 - Basis of Presentation

     The consolidated financial statements for periods prior to the spin off
include only those assets and liabilities contributed by APTA as described
above.  These financial statements have been prepared using APTA's historical
basis of the assets and liabilities and the historical results of operations
and have been prepared in accordance with the rules and regulations of the
Securities and Exchange Commission applicable for subsidiaries which have
been spun off.  These rules stipulate that statements shall be prepared as if
the entity had existed prior to the existence of the new company.

                                 -7-
<PAGE>

                       GAVELLA CORP. AND SUBSIDIARY
                 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                         MARCH 31, 2001 AND 2000

                              (UNAUDITED)

Note 4 - Basis of Presentation (continued)

Such statements are not those of a real entity, but describe a hypothetical
"accounting predecessor" to Gavella Corp.  The financial statements presented
include all the operations of the Company as well as the operations of the
Company's predecessor prior to the spin-off, and have been accounted for in a
manner similar to that of a pooling of interests.

In management's opinion, the accompanying consolidated financial statements
include all common and corporate level expenses which would have been
incurred on behalf of the accounting predecessor by APTA. Management has
allocated such expenses based on its best estimate of the actual time and
effort expended for the benefit of Gavella Corp., and believes such
allocation to be reasonable. Additional corporate overhead expenses of $3,000
for the three months ended March 31, 2000 have been allocated to Gavella
prior to the spin-off and are included in administrative expenses in the
accompanying consolidated statement of operations and deficit with the
offsetting credit amount reflected as contributed additional capital.

Net loss per Share - Pro Forma

Basic net loss per share is computed on the basis of the weighted average
number of shares outstanding each period and excludes any dilutive effects of
options, warrants, and convertible securities.  Dilutive earnings per share
is computed giving effects to dilutive stock equivalents.  The Company had no
potential common shares at March 31, 2001 and 2000.

     Net loss per share prior to the spin-off has been computed giving
effect to the distribution ratio of 1 common share of Gavella stock for each
common share of APTA.  Accordingly, weighted average common shares
outstanding for the accounting predecessor have been computed based on the
hypothetical shares outstanding of Gavella Corp. for the respective period.
Calculated earnings per share may not be representative of earnings per share
subsequent to the transfer of the assets and liabilities from APTA since the
level of other expenses incurred by Gavella may be higher than was incurred
on a historical basis.


                                 -8-
<PAGE>

ITEM 2.     MANAGEMENT DISCUSSION AND ANALYSIS OR PLAN OF OPERATION

The following discussion and analysis should be read in conjunction with the
Consolidated Financial Statements and Notes thereto appearing elsewhere in
this Form 10-QSB and in the previously filed Form 10-KSB for the period
ending December 31, 2000.

General
-------

Gavella Corp. ("Gavella" or the "Company") was incorporated on June 21, 2000
in the State of Delaware as a wholly owned subsidiary of Apta Holdings, Inc.
("Apta").  On August 7, 2000,  APTA transferred all of the assets and
liabilities of its 100% wholly owned subsidiary, Spring Village Holdings,
Inc. to Gavella in exchange for 2,000,000 shares of $.001 par value Gavella
common stock.  Spring Village Holdings, Inc. owns an 80% controlling interest
in SVG Properties, L.P., a New Jersey limited partnership (the
"Partnership").  The Partnership owns a 124 unit apartment complex.  The
transfer of Spring Village Holdings, Inc. to Gavella was due to a decision by
Apta's Board of Directors to separate the finance business and the real
estate business into two separate corporations.  On December 27, 2000, each
shareholder of Apta received one share of Gavella for each share of Apta
owned by the shareholders of record as of December 1, 2000. The chart below
depicts the Company's corporate structure:

                         ------------------
                        |   Gavella Corp.  |
                         ------------------
                                100%
                                 |
                    -----------------------------
                   | Spring Village Holdings, Inc.|
                    -----------------------------
                                 |
                                 |
                                 80%
                       ----------------------
                      | SVG Properties, L.P. |
                       ----------------------


The following discussion of the business of the Company includes the business
of Spring Village Holdings, Inc.

The Company is currently engaged in one line of business; owning and
operating income producing real estate.

                                    -9-
<PAGE>
On December 31, 1995, Spring Village Holdings, Inc. acquired, for $50,000, an
80% controlling interest in a 124 unit apartment complex located in Sharon
Hill, Pennsylvania.  The Partnership secured bridge financing to make certain
improvements needed to refinance the property.  Upon completion of the
improvements, rents, occupancy and net cash flow increased and the property
was successfully refinanced on September 19, 1997. Subsequent to the
refinancing, the Partnership has used its positive operating cash flow to
reduce debt.

The consolidated financial statements include the accounts of Gavella Corp.
and its wholly owned subsidiary, Spring Village Holdings, Inc. Spring Village
Holdings, Inc. is the sole general partner of SVG Properties, L.P.  and
completely controls the partnership.  Accordingly, the accounts of Spring
Village Holdings, Inc. include its 80% partnership interest in SVG
Properties, L.P. (T/A Spring Village Apartments). All significant
intercompany transactions and accounts have been eliminated.

For financial reporting purposes, the assets, liabilities, results of
operations and cash flows of the partnership are included in the Company's
consolidated financial statements.  The outside investors' limited
partnership interests have been reflected as minority interests.

The Company has had a history of losses and as of March 31, 2001 reported an
accumulated deficit of $439,465.  The Company has generated a positive cash
flow from operations in the last two years, and anticipates breakeven net
cash flow after all scheduled debt service in 2001.  There can be no
assurance that the Company will be successful in its efforts to generate
sufficient cash flow to meet its scheduled debt service or other cash
requirements.

The Company intends to utilize its contacts and business expertise to locate
and acquire additional properties, primarily apartments, preferably those
that  are undervalued or which can be acquired at less than fair value due to
the  financial difficulties of their owners.  There is no assurance that such
properties can be obtained under terms and conditions that are favorable to
the Company.

Results of Operations
----------------------

The following discussion is for the three months ending March 31, 2001 and
2000, respectively.

The Company reported total revenues of $210,712 and $208,376 in 2001 and
2000, respectively, an increase of $2,336 or 1%.  Occupancy was approximately
95% and 96%, respectively. The lower occupancy was offset by a small increase
in the average unit rental rate resulting in the increase in rental revenue.

Total operating expenses increased from $155,998 in 2000 to $191,207 in 2001,
an increase of $35,209 or 23%.

                                    -10-
<PAGE>
Administrative expenses increased to $52,072 in 2001 from $38,187 in 2000.
Utilities increased by $12,472 as a result of a significant increase in the
price of natural gas.  Operating and maintenance expense increased from
$26,435 in 2000 to $32,179 in 2001.  Taxes and insurance increased by $1,411,
primarily due to increases in real estate taxes.  Depreciation increased by
$1,697 to $31,241 in 2001, reflecting recent capital improvements being
depreciated.  Operating income decreased from $52,378 in 2000 to $19,505 in
2001, primarily due to the increases in total expenses discussed above, which
were only partially offset by higher revenues.

Net interest expense decreased by $1,840 from $76,529 in 2000 to $74,689 in
2001.

Net loss increased from ($24,151) in 2000 to ($55,184) in 2001.  Basic net
loss per share was ($.01) in 2000 and ($.03) in 2001.

The Company is taxed as a C-corporation for federal and state income tax
purposes.  As such, the Company will pay taxes on its net income as defined
by the Internal Revenue Code.  No tax attributes of the Company flow through
to the shareholders except for the regular taxation of dividends paid, if
any.


Liquidity and Capital Resources
--------------------------------

At March 31, 2001, the Company had a working capital of $6,184, including
cash held in escrow for anticipated future expenses.  The Company needs
additional financing to expand its business and carry out its business plan
and reduce debt.

On January 1, 2001, the Company had $91,310 in cash, exclusive of $37,123 in
cash held in escrow accounts.

During the three months ending March 31, 2001, the Company received $42,500
from installment notes payable during the period.  Operations used $38,294.
The Company used $901 to purchase property and equipment, and reduced
mortgage debt by $9,968.  The net decrease in cash for the period was $6,663.
The Company had $84,647 in cash on March 31, 2001, exclusive of $72,114 in
cash held in escrow accounts.

The Company anticipates breakeven net cash flow after all scheduled debt
service in 2001, including principal payments totaling $41,137 on long term
debt.  There can be no assurance that the Company will be successful in its
efforts to generate sufficient cash flow to meet its scheduled debt service
or other cash requirements.

                                    -11-
<PAGE>
The Company's balance sheet is highly leveraged.  The Company plans to reduce
this leverage through future equity offerings as well as by funds generated
from operations.  The Company  believes it can support operations and planned
capital expenditures for at least twelve months.  Thereafter, the Company's
continued success will be dependant upon its ability to maintain occupancy at
93% or above and to keep operating costs under control.

In the event that the Company's plans change or its assumptions change or
prove to be inaccurate, the Company may be required to seek additional
financing sooner than currently anticipated.  The Company has not identified
any potential sources of debt or equity financing and there can be no
assurance that the Company will be able to obtain additional financing if and
when needed or that, if available, financing will be on terms acceptable to
the Company.

Forward Looking Statements
---------------------------

The Company is making this statement in order to satisfy the "safe harbor"
provisions contained in the Private Securities Litigation Reform Act of 1995.

The foregoing discussion includes forward-looking statements relating to the
business of the Company.  Forward-looking statements contained herein or in
other statements made by the Company are made based on management's
expectations and beliefs concerning future events impacting the Company and
are subject to uncertainties and factors relating to the Company's operations
and business environment, all of which are difficult to predict and many of
which are beyond the control of the Company, that could cause actual results
of the Company to differ materially from those matters expressed in or
implied
by forward-looking statements.  The Company believes that the following
factors, among others, could affect its future performance and cause actual
results of the Company to differ materially from those expressed in or
implied
by forward-looking statements made by or on behalf of the Company:  (a) the
effect of changes in interest rates; (b) the rental rate and demand for
apartment rental units; (c) fluctuations in the costs to operate the
properties owned by the Company; (d) uninsurable risks; (e) unexpected
losses, and (f) general economic conditions.


                                    -12-
PART II

OTHER INFORMATION
------------------


ITEM 1    LEGAL PROCEEDINGS

NONE


ITEM 2    CHANGES IN SECURITIES

NONE


ITEM 3    DEFAULTS ON SENIOR SECURITIES

NONE


ITEM 4    SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

NONE

ITEM 5    OTHER INFORMATION

NONE

ITEM 6    EXHIBITS AND REPORTS ON FORM 8-K

     (a) Exhibits

         None

     (b) Reports on Form 8-K

         None




                                    -13-
                                 SIGNATURES


In accordance with the requirements of the Exchange Act, the registrant
caused this report to be signed on its behalf by the undersigned, thereunto
duly authorized.


                            GAVELLA CORP.


Dated: May 9, 2001         /s/ Harry J. Santoro
                            ----------------------------------------
                            Harry J. Santoro
                            President, Chief Executive Officer and
                            Chief Financial Officer



















                                  -14-