Adler acquired the 32% occupied property in 2004 and completed a full renovation to the common areas including lobbies, restrooms, and café. During its first few years of ownership, Adler successfully stabilized the property with several large leases, including four with various government agencies. Adler maintained high occupancy during its fifteen years of ownership and subsequently made other major upgrades to building infrastructure, including the replacement of the fluid cooling towers, modernization of all seven elevators, and major improvements to the fire life safety system.

“The investment provided Adler’s investors cash flow and substantial appreciation as the property nearly doubled in value over the ownership period. We acquired an under performing asset at a discounted price and successfully executed our business plan to renovate and lease-up the high vacancy” said Michael Adler, President of Adler.

Adler continues to look throughout the western United States for other value-add office, industrial, and retail opportunities. Mindy Korth of Colliers represented Adler in the transaction.

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.”

PHOENIX –EnTrust Realty Advisors has completed the sale of a 164,400-square-foot office portfolio to Adler Realty Investments, Inc., a private investment group. The portfolio is comprised of four buildings at the Corridors Phoenix office park. Located at 1925, 2001, 2075, and 2095 W. Pinnacle Peak Rd., the buildings were developed by The Alter Group.

Adler Realty Investments, Inc. is a real estate investment firm with more than $750 million in acquisitions since its inception in 1996. Adler’s real estate portfolio currently consists of more than 3 million square feet of office, retail, industrial and multi-family residential properties as well as land for development throughout the western United States.

EnTrust represented the seller, The Alter Group. Alter Asset Management will continue to provide property management services to the new owner.

James L. Clark, managing principal for EnTrust Realty Advisors tells GlobeSt.com, the Deer Valley market is reviving lately, with a lot of lease absorption—40,000 square feet at the Corridors property alone. “It’s a reliable part of the market right now,” he says.

“The buyer liked the credit tenancy and the property was 80% leased, leaving some room. It was perfect timing for the buyer—they were in the middle of a 1031 exchange.”

Phoenix has become a prized office market with more than 1 million square feet of net absorption this year, surpassing all of 2013, and is attracting significant interest from investors across the country.  Adler Investments was able to structure the transaction as a 1031 exchange in order to achieve their tax planning objectives.

“We’re seeing more and more capital from the West Coast, and also from Canada. That capital is moving inland to Phoenix. In fact more capital from around the US continues to move to Phoenix,” says Clark. “Not just downtown Phoenix, but collar submarkets as absorption starts to move outward to places like Deer Valley.”

The Corridors is an 80-acre corporate office park that is home to a Drury Inn & Suites Hotel and regional headquarters for blue-chip firms such as the Chubb Group of Insurance Companies and the Arizona State Credit Union. The project serves both national and regional headquarters, as well as back-office functions.

Located on the southeast corner of I-17 and Pinnacle Peak Road in the rapidly expanding Deer Valley area, the site is just two freeway exits north of the Route 101 Agua Fria/Pima Freeway, the outer loop road that surrounds Phoenix.

The entire article may be viewed at http://www.globest.com/news/12_938/phoenix/office/Four-Building-Sale-of-Office-Portfolio-349997.html

In the sale, Adler collected $16.8 mil for Chatsworth Industrial Park, a 152.9k sf ($110/sf) industrial park at the intersection of Nordhoff and Independence in Chatsworth that was purchased by Rexford Industrial Realty.

Adler acquired the project two years ago, when the seven-building project had been in bankruptcy due to a default of the original ownership. Adler was able to create a reorganization plan with the current lender and work through the intricate procedures to get the plan approved and bring the ownership entity out of bankruptcy. Adler renovated the project and quickly brought the occupancy up to 100% with multiple lease transactions.

Bennett Robinson, Craig Peters, and Robert Valenziano of CBRE represented both the buyer and the seller in this deal. Matthew Sullivan from Lee & Associates brokered the purchase for Adler.

In the acquisition, Adler paid $16 mil for four multi-tenant office buildings totaling 164k sf in Phoenix. The property is part of a larger 80-acre mixed-use park called “Corridors” in the Deer Valley submarket of Phoenix. The Alter Group, the developer of the park, was the seller in the transaction.

The office campus is currently 86% leased, including a 41k sf lease with the State of Arizona signed while the property was under agreement for sale. Adler plans to aggressively lease the remaining 23k sf of vacant space at the project and provide a steady cash flow stream for its investors.

James Clark, III of EnTrust Realty Advisors represented both parties in this transaction.

Full Link: http://www.rentv.com/content/southerncalifornia/mainnews/news/18863

“We are excited about the execution of these substantial leases at the building and are pleased with the activity we are seeing in the market” said Michael Adler, President of ARI. “Our ability to be creative and attentive to prospective tenants’ needs has consistently resulted in win-win transactions for both our tenants and our investors.”

John Bonnell and Brett Abramson of Jones, Lang LaSalle are the listing brokers at the property.