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.

The property had been acquired in 2014 from a seller who was in bankruptcy and Adler worked with the courts to have the sale approved. Two thirds of property was leased back to the seller and the remainder is being marketed for lease. Adler stabilizes the property with a second tenant providing the Adler investors a steady cash flow.

The original seller had the option to purchase the property back from Adler but did not exercise option. Adler was then able to sell the buildings at a greater price providing investors a 20% annual rate of return over a four year period.

“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 Realty Investments. “Adler continues to provide rescue capital to owners and implement creative solutions to solve financial and operational issues.”

“We are pleased with the successful development and sale of the initial three buildings,” said Michael Adler, president of Adler. “This industrial development meets the growing need in Riverside County for quality industrial product in a very supply restrained market.” added Rod Oshita, President of Fairway Commercial Partners. “The industrial park benefits from a central Inland Empire location with easy access to interstate 15”.

Phase II of the development is anticipated to break ground in the 2nd quarter of 2018 and will consist of six buildings varying in size from 8,000 square feet to 18,000 square feet.. Larry Null and Charlie Black of Lee & Associates, represented the seller and buyer in the transaction and will be marketing the future phases.

Four of the buildings are located on Brundage Street off of route 58; and two are located on District Avenue a mile west of route 99. Current tenants include Crystal Geyser, Bimbo Bakeries, On-Trac, and Bilfinger Industries to name a few..

The sale of the project provided Adler’s investors a 20% annual rate of return(IRR) over the three and a half year ownership period. “We are pleased with the success of the investment,” said Michael Adler, president of Adler. “This venture is a typical transaction for our business. We acquired an under-performing property, executed our business plan to improve and stabilize the asset, thereby resulting in higher values and above market returns for our investors.”

Adler is aggressively looking throughout the western United States for other value-add opportunities. Patrick Barnes, Rich Putnam, and Bret Hardy of Colliers International, represented the seller and buyer in the transaction.

The property is located on the corner of Santa Fe Avenue and east 55th Street in a densely industrial neighborhood south of downtown Los Angeles. Adler plans to renovate the building in the short term and upgrade the existing structure and systems for the tenant. The total land for the project totals nearly four acres providing the potential for a future redevelopment of the site into a larger and more modern food distribution center.

“We are excited about the acquisitions since industrial buildings in Vernon rarely are available to purchase.” said Michael Adler, president of Adler. “We are actively looking for other value-add and opportunistic properties to acquire for our investors.”

Will Smith of Colliers International represented both Seller and Buyer in this 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.”

Two thirds of property was leased back to the seller and the remainder was vacant but then leased after the purchase.  With the 2nd tenant in place, Adler’s investors are provided with a steady cash flow.

“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 Realty Investments.  “Adler continues to provide rescue capital to owners and implement creative solutions to solve financial and operational issues.”

-ADLER REALTY INVESTMENTS-

The 526k sf portfolio is currently 62% leased. Adler plans to make renovations to the project, with a focus on improving the functionality of the space by upgrading the truck loading capabilities and bettering the overall condition of the property.

Four of the buildings front route 58 on Brundage Lane, west of Vernon Ave, and two of the buildings are located on District Blvd, west of Ashe Rd in southwest Bakersfield. Current tenants include Crystal Geyser, On-Trac, Ashley Furniture, Red Bull, Bimbo Bakeries, and the State of California.

Stephen Haupt of Colliers Tingey International has been retained as leasing agent, and M.D. Atkinson Company will be managing the property for Adler.

Full Link: http://www.rentv.com/content/southerncalifornia/mainnews/news/17319