Investments & Acquisitions

Adler Group invests in commercial, multi-tenant industrial, flex and office space in the Southeast, Mid-Atlantic and Southwestern United States.

Albemarle Point
Chantilly, VA

Our core competency is in multi-tenant, management-intensive commercial real estate. We focus on investments with favorable risk-adjusted cash-on-cash returns that can be sustained with strong operations. The heavy operational focus of our onsite management allows for rapid response to the needs of individual tenants. We place an emphasis on cash flow growth at the property level as the key to value creation.

Adler's acquisition strategy encompasses multi-tenant industrial, flex and office properties throughout the Southeast, Mid-Atlantic and Southwest United States.

Adler Group Has a History of Delivering Strong Risk Adjusted Returns

Adler's management company has a strong track record of managing warehouses, large business parks and CBD office assets
Adler has successfully invested in similar supply-chain-oriented assets since 1971
Adler invested the Apollo-Adler Fund ("AP-Adler"): ~$200 million; 25 assets; 5.9 million square feet; blended 18.2% IRR, 2.29x multiple on cash invested
In addition to Adler Real Estate Fund, a $20 million discretionary fund, Adler has created numerous private equity joint ventures, building a best-in-class captive property management and leasing platform to manage its assets

Multi-tenant business parks and industrial facilities offer favorable risk-return profile

Properly managed, shorter term leases and diverse tenant mix present an opportunity for attractive NOI growth
NCREIF: Office/flex parks achieved annual unlevered return of 9.54% between 1983-2008 (vs. CBD Office at 8.41%)

Attractive acquisition opportunity in the economic down-cycle

Small- and medium-size, supply-chain-oriented (vs. end user) businesses form the predominant tenant base in these assets
Small- and medium-size businesses historically create more jobs – thus demand for space – early in a recovery cycle
Average yields of 7-9% with leverage of 60-70%; realistic target of 13-17% total returns with current cash flow emphasis

Adler Operational Focus

Adler Group has historically demonstrated the ability to achieve value creation through a strong focus on management and leasing. As manager of real estate assets, the company brings the following tendencies to its investment portfolio properties:

Preference toward on-site management, with over 40% of new leasing accomplished through walk-in traffic
Amenity package and procedures designed to foster interaction between tenant and landlord
Focus on tenant retention with renewal ratios in excess of 70% even through heart of the recession
Dashboard-based integrated information and accounting systems provided by Yardi®
Management and leasing personnel play active roll in acquisitions sourcing and underwriting
Physical expertise enhances capital and leasehold improvement plans
Track record of stabilizing assets through value add lease-up strategy

Investments

Acquisitions