Acquisitions

The investment strategy for Adler Group is to fully capitalize on its skills across a broad forum of real estate investment and management.

Sawgrass Exec Center
Sunrise, FL

Acquisition Criteria

Adler Group is seeking property investment opportunities that meet a specific set of criteria.

We are currently seeking opportunities for our latest venture, the Helios Fund. The Helios Fund is a real estate investment fund seeking to provide income and capital appreciation to its investors through the acquisition, operation and ultimate disposition of commercial real estate or interests therein.

Property Types

Multi-tenant office, flex, industrial and retail properties.

Location

Southeastern and Mid-Atlantic regions of the United States.

Characteristics

Target properties for investment possess one or more of these unique characteristics:

• Income-Producing: Properties that generate stabilized cash flow and can be acquired at favorable capitalization rates. Other properties that are underperforming in terms of market rents, occupancy, or ineffective operations, but through active management will increase net operating income and thereby the value of the asset.
• Capital Appreciation: Properties that are expected to offer significant capital appreciation through increased rent roll income. Properties will be selected through identification of geographic areas that are expected to benefit from demographic trends and/or land constraints where the replacement costs exceed the cost of acquisition.
• Value Enhancements: Properties that require capital expenditures, such as repairs and improvements, and/or properties that may be repositioned either through alternative uses or exit strategies, which will increase occupancies, rental rates and overall equity values.

Transaction Size

Purchase prices ranging from $6 million to $50 million.

Acquisition Strategy

Existing multi-tenant industrial, flex, office and retail properties are only one aspect of Adler's experience. Our expertise includes single tenant facilities, conversion of single tenant to multi-tenant, residential and mixed-use facilities, all in various stages of the business cycle. Future investments will be divided across a three-pronged Investment Spectrum.

• "Core-Plus" – Consists of multi-tenant properties at or near stabilized occupancy (typically 85%, but may vary by market) at the time of acquisition and in the foreseeable future. Properties will not require market repositioning and will require minimal new leasing. Primary focus with this asset class will be maintaining existing occupancy through active management and leasing. Properties will be well-located in strong sub-markets that have established infrastructures and a history of growth and stability.
• "Value-Add" – Consists of properties which require market repositioning and/or moderate capital expenditures prior to reaching stabilized occupancy and maximum potential rental rates. Property occupancy of 70-80% at the time of acquisition. Capital improvements likely required to upgrade the overall life, functionality and appeal of properties. Minimal cash flow expected during repositioning phase. Management's efforts will be focused on required improvements and aggressive leasing, with goal of increasing occupancy to a stable level within 2 years. Properties will be located in historically strong submarkets and/or those expected to grow in the coming years.
• "Opportunistic" – Assets will be distressed rental properties as well as debt instruments, development and redevelopment opportunities. In addition to multi-tenant office, industrial and flex properties, Adler will consider single tenant, residential, retail and mixed-use properties. Occupancy of rental properties will be low at the outset and require significant time, effort and capital to reach stabilization. Management's efforts will initially be focused on required capital improvements to increase property functionality and curb appeal. Thereafter, aggressive leasing and management will be required to achieve stabilization. As financing on these properties may not be attractive at the outset, we expect to sell or refinance properties upon stabilization.