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.

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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.

“We are very pleased with the outcome of this investment for the original owner and for our capital invested in this property, especially due to the complexity of the transaction when it was purchased and the creative deal structure which it required,” said Michael Adler, president of Adler Realty Investments.  “Adler continues to provide rescue capital to owners who are undercapitalized and need Adler’s expertise to solve financial and operational issues.”

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

About Adler Realty Investments, Inc.

Adler Realty Investments, Inc. is a full-service real estate investment and development firm with over $750 million in acquisitions since inception. ADLER’s real estate portfolio consists of more than 3 million square feet of office, industrial, retail and multi-family residential properties in Texas, California, Colorado, and Arizona and now Georgia, as well as vacant land for future development.  ADLER’s trademark is its unparalleled ability to identify, analyze, negotiate and close transactions involving many different types of real estate. ADLER has the experience and expertise required to execute management and development strategies to maximize a property’s value in the market.

For more information, please contact Michael Adler at (818) 884-2200 or Chris Engel at (818) 480-5501, or visit www.adler-realty.com. Adler Realty Investments, Inc. is located at 20951 Burbank Blvd. Suite B, Woodland Hills, Calif. 91367.

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The project is located at the intersection of Nordhoff Street and Independence Avenue in the highly desirable industrial area of Chatsworth. Adler plans to renovate the project and complete the leasing of the remaining 17,000 square feet of vacant space. While in the process of getting the bankruptcy plan executed, Adler had already taken over the management and leased some of the vacant space and executed renewals with several of the existing tenants.

“We are pleased with the investment structure we were able to create which provided a win-win scenario for all of the parties in the transaction” said Michael Adler, president of Adler. “The creativity in the deal structure, allowed for the original owner to preserve a good portion of their equity, as well as paying off all the creditors in the project.”

About Adler Realty Investments, Inc.
Adler Realty Investments, Inc. is a full-service real estate investment and development firm with over $600 million in acquisitions since inception. ADLER’s real estate portfolio consists of more than 2.7 million square feet of office, industrial, retail and multi-family residential properties in Texas, California, Colorado, and Arizona, as well as vacant land for future development. ADLER’s trademark is its unparalleled ability to identify, analyze, negotiate and close transactions involving many different types of real estate. ADLER has the experience and expertise required to execute management and development strategies to maximize a property’s value in the market.

For more information, please contact Michael Adler at (818) 884-2200 or Chris Engel at (818) 480-5501, or visit www.adler-realty.com. Adler Realty Investments, Inc. is located at 20951 Burbank Blvd. Suite B, Woodland Hills, Calif. 91367.
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