Investment Strategy

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 Focus

Property Type: Focus on multi-tenant, management-intensive office, industrial and flex located within business parks

Transaction Type:
Stabilized Core-Plus – Manage for occupancy and rent growth
Value Add – Entails repositioning of assets through capital and leasehold improvement plan in stable markets, with emphasis on Net Operating Income (NOI) growth

Timing: Manage for maximum NOI growth within a general five-year holding period

Thesis: Opportunity arises when multi-tenant office/flex assets are perceived as riskier than single-tenant credit leases

• The risk-return profile of the office/flex asset class is often misunderstood by investors fixated on tenant credit
• Multi-tenant assets syndicate credit risk across large pool of tenants, lessening the impact of non-performance by one
• Short-term leases provide opportunity for cash flow growth, better indexed for inflation than long-term leases
• Deep experience with office/flex allows Adler to spot opportunities with attractive risk-adjusted yields
• Adler has demonstrated ability to grow NOI across market cycles
• Focus on operations of management intensive properties leads to value creation

Target Markets

Adler intends to invest substantial portions of The Fund in Florida, with the target markets being South Florida, Tampa, Orlando and Jacksonville.

The Fund will target markets for a minority of the investments within the following states: Texas, North Carolina, Virginia, Tennessee, Georgia and Maryland.

The target markets have exceeded national averages for growth in employment and population over the trailing 10 years. Real estate markets in the Southeast U.S., such as those listed above, are generally attractive to the office/flex asset class due to the following:

• Significant presence of small- and medium-size businesses with preference for low-cost space vs. luxury CBD assets
• Attractive environment for job growth, with right to work laws, corporate-friendly tax regimes and affordable quality/cost of living
• Key distribution hubs, intermodal transport and major transportation arteries
• Port commerce likely to see materially positive impact upon completion of Panama Canal widening project