Adler, who acquired the project in 2003, fully renovated the buildings systems and common areas over the years while maintaining high occupancy. Adler successfully restructured the debt to enable the company to carry the project through the economic downturn.

“We are happy with the recovery of the property’s value since the collapse of the real estate market, and the cash flow produced from the property during our ownership” said Michael Adler, president of Adler Realty Investments. “while we owned the property for a longer period than originally anticipated, our commitment and expertise allowed us to provide a nice profit to our investors “

The sale was an off market transaction with Noel Aguirre, of Lee & Associates and Jorge Yamzon of Remax , bringing the sale together.

Adler had recently acquired two properties in the Los Angeles area which were the up legs for the exchange. The first was a 100,000 square foot office building in Calabasas, which Adler acquired for $24,000,000. Located at 23901 Calabasas Road the property is 96% leased. Adler is currently renovating the common areas of the property and plans to hold the asset for cash flow.
The second properly is a refrigerated food distribution warehouse in Vernon which was acquired for $9,000,000. The property is located in a high demand industrial area of Los Angeles at the intersection of Santa Fe Avenue and 55th Street. The project is a future development site for Adler due to excess land and under improved site.

“Executing the reverse exchange was strategic for us in order to defer a tax event on the large gains of the ownership entity”, said Michael Adler, president of Adler Realty Investments. “We are excited about the two new projects which should provide our investors with good cash flow and above market returns”.

Kevin Shannon of CBRE represented both parties in this transaction.