May 8, 2019
By: Edward Moore (DaviesMoore)

BOISE, IDAHO – It is announced today that Adler Industrial, LLC acquired a portfolio of land and buildings from the Van Auker Companies consisting of over 2 million square feet of industrial buildings and over 400 acres of future development land.

The Treasure Valley is experiencing a boom in business growth and Mike Adler, president of Adler Industrial, LLC plans to support this growth. With the purchase of over 80 properties from Van Auker Companies, along with other properties that Adler has acquired over the last two years in the valley, Adler’s focus is to facilitate growth and keep up with the high demand local business has for warehousing, distribution, and manufacturing facilities.

“As people know, Idaho’s growth is creating both opportunities and challenges,” said Mike Adler, “we’re looking forward to being a part of solutions which preserve Idaho’s quality of life while facilitating the growth of Idaho companies and the jobs they provide.”

The seller, Van Auker Companies, has been a Treasure Valley staple for 60 years. “Through our research in targeting well located industrial properties in the valley for investment, we found the Van Auker portfolio to be the right choice to grow our platform and assume Van Auker’s competitive advantage in the market,” Mike Adler said. “We share the same philosophies about building strong tenant relationships and doing business the right way.”

Brad Miller, executive vice president of Van Auker, will transition immediately over to Adler Industrial, as managing director. Other Van Auker employees will transition to Adler Industrial over time.

With experience in larger western markets, Adler Industrial will bring a renewed focus to developing and maintaining Class “A” properties, as well as improved service and organized future planning.

Mike Adler’s long history in the mountain west has given him an appreciation for the unique needs of the region. His work in industrial real estate investment in Colorado provided perspective on how best to make an impact on infrastructure in the western United States.

To manage their properties, Adler Industrial has opened its headquarters on Emerald Street in Boise.

Peter O’Brien of Pacific Commercial Realty Advisors/Cushman & Wakefield assisted the buyer in the transaction, while Dave Ellis of Capacity Commercial Group assisted the seller.

About Adler Industrial, LLC

Adler Industrial, LLC is a real estate management and development company based in Boise, Idaho. Their focus is managing, developing, and investing in Class “A” industrial properties in the Treasure Valley. Adler Industrial prides itself on earning the trust and respect of its tenants, as well as brokers and other development firms in the community. Their goal is to foster the continued growth of businesses in Idaho in the best possible ways.

IdaPines ,who has been modernizing their facility and growing at a swift pace, will utilize some of the sale proceeds to fund their growth including further improvements to their manufacturing capacity. As part of the transaction, IdaPines executed a fifteen-year lease for the entire facility.

“We are pleased with the investment structure we were able to create that will assist IdaPines with their growth while providing our investors with a stable stream of cashflow for many years” said Michael Adler, president of Adler Realty Investments. “Adler continues to look for opportunities where it can implement creative solutions to solve financial and operational issues.”

The 87,083 square foot center is anchored by a Marsh Supermarket and includes other national tenants including AT&T, Verizon Wireless, Noodles & Co., Great Clips, and Papa Murphy’s Pizza. Marsh Supermarkets, the leading grocer in the area, was founded in Muncie, Indiana and now has 75 locations in the region. The project is expected to provide investors with consistent cash flow averaging over 9% per year.

“We are excited about the prospects of Marsh Plaza.” said Michael Adler, president of Adler. “This property successfully meets one of our investment strategies of finding the best locations in healthy smaller markets, which should provide our investors a high yielding cash flow return, with a good opportunity for appreciation.”

Adler plans to renovate the building, including upgrades to the lobbies, common areas, landscaping, and interior courtyard to provide the property a more updated image. The 100,000 square foot building is 95% leased with mostly small professional clients who service the San Fernando Valley along with Rodeo Realty, a leading residential broker in the area.

“We are pleased with the acquisition which further expands our local portfolio which now totals fifteen buildings within a five mile radius of the property,” said Michael Adler, president of Adler. “Chris Engel, our director of acquisitions, is aggressively looking throughout the western United States for other investment opportunities beyond the nine transactions we have already closed this year.”

Bill Bauman and Kyle Miller with Savills Studley represented both Seller and Buyer in this transaction.

The first property was a 53,643 square foot office building in the St Louis suburb of St Charles. The property is 100% leased with Royal Canin as the major tenant. The second property was a fully leased 30,300 square foot neighborhood retail center in Sikeston, Missouri. Situated at the primary intersection in Sikeston the property has a strong national tenant mix including Buffalo Wild Wings, UPS Store, and Charter Cable Company.

“These properties add to our portfolio’s diversification and I am excited to continue our expansion in the region,” said Michael Adler, president of Adler. “Chris Engel, our director of acquisitions, is continuing to look throughout the west and mid-western United States for other investment opportunities to meet our capital requirements.”

Carlos Farfan of CBRE brokered the transactions and Lord Partners, a Sperry Van Ness affiliate, will be managing the assets for Adler who is headquartered in Los Angeles.

Strategically located near the Phoenix airport, the buildings total 57,000 square feet and are 78% leased. Adler plans to aggressively lease the remaining 12,500 square feet of vacant space at the projects and provide a steady cash flow stream for its investors.

“These properties work well for our 1031 tax deferred exchange and add to our portfolio’s diversification,” said Michael Adler, president of Adler. “Chris Engel, our director of acquisitions, is continuing to look throughout the western United States for other investment opportunities to meet our other exchange requirements.”