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.”

The proposed $1-billion development by Adler Realty Investments Inc. is one of many big real estate plans coming together in Warner Center, where Los /Angeles city planners are working to create another densely.

[pdfviewer]https://adler-realty.com/wp-content/uploads/2017/06/Warner_Center.pdf[/pdfviewer]

LA Times June 21, 2017 – Roger Vincent

Bisnow: How did you get started in the industry?

Michael Adler: I started my career as an MAI real estate appraiser specializing in commercial property valuation. During the downturn in the real estate market in the early 1990s, I realized rather than valuing property for other people, I should be buying property on my own account. Then invited other investors to participate with me as limited partners. I continued strategically acquiring, developing or adding value and selling properties, and building my portfolio ever since and making great returns on investments for both me and my investors.

Read the Full Q&A online  or Download the PDF

After an extensive search, Adler identified a well located vacant building which will be renovated and transformed into a food service facility meeting FDA standards.  The tenant who has major accounts with Trader Joes, Albertson and Vons had outgrown their current space and could not meet the production demands of their clients.

Adler has been very successful in providing creative solutions to solve financial and operational issues for business operators.  In this case, there were no existing facilities which met the tenant’s needs, thus Adler found and empty facility which could be adapted to meet the tenants requirements and was able to help finance the improvements for the tenant through a rent structure.

“I am so happy we will have a new, state of the art, baking facility that will meet the demands of our growing business”, said Abby  Franke.  “The Adler team was extremely diligent and helpful in making this happen for us.”

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 deals are some good news for Hillhurst Los Feliz LLC, which bought the property at 4500 Los Feliz Blvd. in 2004 as a tear-down. However, its plan to build a mixed-use residential building was dashed when a preservationist group successfully appealed for a historic and cultural designation.

There were four Brown Derby restaurants that were hot spots in the ’30s and ’40s with Hollywood luminaries. The original on Wilshire Boulevard, and two others in Hollywood and Beverly Hills were demolished.
Adler Realty Investments Inc., a Woodland Hills real estate investment firm that is the managing partner of Hillhurst Los Feliz, recently signed a 10-year lease with Chase Bank, which will open a 5,800-square-foot branch. The deal is valued at $2.8 million. Italian restaurant Louise’s Trattoria, a longtime tenant, also renegotiated its 5,200-square-foot lease in a 10-year deal worth $2.3 million, said Duncan Lemmon, a principal with Lee & Associates, who represented the landlord in both transactions.

The Derby, a restaurant and nightclub that played off the original name and previously occupied Chase’s space, moved out about one year ago, he said.

The property is being further divided to make more than 2,000 square feet of space for a third retail tenant along Hillhurst Avenue. Lemmon said he’s already fielded interest from prospective tenants.

“It’s being renovated at this point with restoration on the exterior and a new roof, air conditioning – all the components to re-tenant the building and bring it up to today’s standards within the historical guidelines,” Lemmon said.

Tim Bower, a senior vice president at CB Richard Ellis, represented Chase.

Los Angeles Business Journal