The building was acquired in 2015 as part of a two property portfolio from a bank who had taken the property from a developer who had defaulted on their loan. Adler purchased the property at a deep discounted price which was well below replacement cost. The property provided the investors cash flow averaging 14% annually and provided an overall annual internal rate of return (IRR) of approximately 31.8%, which equates to a total return on investment of approximately 107%.

“We are very pleased with the outcome of this investment as our investors were able to double their investment over a short period of time,” said Michael Adler, president of Adler Realty Investments. “We continue to excel in providing investors with unique investment opportunities providing above market returns.”

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.

Adler plans to renovate the building, including upgrades to the lobbies, common areas, landscaping, and interior courtyard to provide the property a more updated image. The 100,000 square foot building is 95% leased with mostly small professional clients who service the San Fernando Valley along with Rodeo Realty, a leading residential broker in the area.

“We are pleased with the acquisition which further expands our local portfolio which now totals fifteen buildings within a five mile radius of the property,” said Michael Adler, president of Adler. “Chris Engel, our director of acquisitions, is aggressively looking throughout the western United States for other investment opportunities beyond the nine transactions we have already closed this year.”

Bill Bauman and Kyle Miller with Savills Studley represented both Seller and Buyer in this transaction.

The first property was a 53,643 square foot office building in the St Louis suburb of St Charles. The property is 100% leased with Royal Canin as the major tenant. The second property was a fully leased 30,300 square foot neighborhood retail center in Sikeston, Missouri. Situated at the primary intersection in Sikeston the property has a strong national tenant mix including Buffalo Wild Wings, UPS Store, and Charter Cable Company.

“These properties add to our portfolio’s diversification and I am excited to continue our expansion in the region,” said Michael Adler, president of Adler. “Chris Engel, our director of acquisitions, is continuing to look throughout the west and mid-western United States for other investment opportunities to meet our capital requirements.”

Carlos Farfan of CBRE brokered the transactions and Lord Partners, a Sperry Van Ness affiliate, will be managing the assets for Adler who is headquartered in Los Angeles.

Adler acquired the project two and half years ago as a 50% leased property from a distressed owner. Adler was able to quickly execute several new leases bringing the property to 100% occupancy and providing strong cash flow to its investors.

“We are proud that we were able to complete our business plan faster than anticipated and double our investors money in a short period of time.,” said Michael Adler, president of Adler Realty Investments. “We are also pleased that after the sale we were able to successfully execute a 1031 tax exchange allowing our investors to roll their profits into a new opportunity while deferring their tax gains.”

The broker on the deal was Jeremy Trotter of Synergy Real Estate Group who represented both seller and buyer.

LOS ANGELES (October 21, 2011) – Adler Realty Investments Inc., a real estate investment and development firm, today sold three prime Orange County, Calif.-based office buildings for $7.6 million to Providence Orangewood, LLC.  The 107,000 square foot office complex is on a ground lease and is located at 1835, 1845, & 1915 Orangewood Avenue in the City of Orange.  Saint Joseph’s, UC Irvine, and Azusa Pacific University are the major tenants.

“We are very pleased with our success in the Orange County market,” said Michael Adler, president of Adler Realty Investments.  “We are aggressively looking for other opportunities throughout Southern California and the South Western U.S..”

Brokers on the deal were Gary Stache & Pat Scruggs of CBRE in Newport Beach.

ABOUT ADLER REALTY INVESTMENTS

Adler Realty Investments, Inc. (Adler) is a real estate investment and development firm with more than $350 million in assets currently under ownership/management. Adler’s real estate portfolio consists of more than 2.2 million square feet of office, retail, industrial and multi-family residential properties in California, Texas, Arizona, Colorado and Florida, 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 visit www.adler-realty.com. Adler Realty Investments, Inc. is located at 20951 Burbank Boulevard Suite B, Woodland Hills, Calif., 91367.

CONTACT:

Jo Hunt/Melisa Glasberg
DeLyon-Hunt & Associates
1444 Aviation Boulevard Suite 101
Redondo Beach, CA90278
Ph 310.374-6893 Fax 310.798.1173
melisa@delyon-hunt.com