Adler Group, Inc. Maximizing the Strength of Real Estate
1400 NW 107 Ave | Miami, FL 33172 | 1-800-45ADLER (452-3537)

Deal Case Studies

Learn more about Adler Group's performance in key commercial real estate investments with the following case studies.

Gables One Tower

Property:Gables One Tower
Location:Miami, FL
Property Type:Office
Ownership Structure:Private Investors
Purchase Price:$12,000,000 ($49.64/sf)
Acquisition Date:1974
Date Sold:October 2004
IRR/Equity Multiple (Realized):36%/3.8x
TTM NOI at Sale:$2,223,129
Occupancy at Sale:89.2%

Description:

  • 12-story urban office tower on US-1 in Coral Gables originally developed by Adler in 1974
  • Took over ownership in 1998 as a result of declining occupancy and prior owners leaving property in poor physical state
  • Opportunity to reposition quality, well-located asset through capital improvements, proactive management and leasing

Execution:

  • Made major value-add improvements to the physical plant including: elevators, systems, lobbies, bathrooms, hallways
  • Created higher class building that attracted national, credit-tenant profile

Results:

  • After many years of cash distributions, sold in October 2004 to the University of Miami for $37MM, netting proceeds of $15.9MM on $6.1MM equity investment

Tri-County Park

Property:Tri-County Park
Location:Tampa, FL
Property Type:Office/Flex
Ownership Structure:AP-Adler Fund
Purchase Price:$25,458,000 ($37.76/sf)
Acquisition Date:March 1999
Date Sold:September 2005
IRR/Equity Multiple (Realized):30%/3.8x
TTM NOI at Purchase:$2,648,617
TTM NOI at Sale:$2,918,173
Occupancy at Purchase:84.0%
Occupancy at Sale:92%

Description:

  • 20 building office/industrial business park in the heart of North Tampa purchased from lender John Hancock
  • Growth in the nearby high-income residential sector presented opportunity to convert existing industrial space to flex and office
  • Purchased REO from the lender, which had been working with local third-party leasing and management providers

Execution:

  • Provided onsite management and in-house leasing required to provide service level demanded by target market
  • Aggressive capital program to lift the park's profile, including revitalization of building façade, painting and parking lot repaving
  • Effected significant capital savings through utilizing roof life extension programs and products
  • Repositioned asset as a business park rather than an industrial park, thus capitalizing on the location's demand from business owners and executives

Results:

  • Stabilized occupancy at 92% while consistently achieving substantial rent increases throughout product conversion

Interstate Corporate Center

Property:Interstate Corporate Center
Location:Norfolk, VA
Property Type:Office/Flex
Ownership Structure:Private Investors
Purchase Price:$31,500,000 ($71.56/sf)
Acquisition Date:December 2004
IRR/Equity Multiple (Unrealized):26%/2.5x
TTM NOI at Purchase:$3,103,392
TTM NOI at Sale:$4,379,359
Occupancy at Purchase:89.5%

Description:

  • Class B, management-intensive, 17 building multi-story office park located in Norfolk, VA at a crossroads of I-64/I-264, the heart of transportation infrastructure serving Norfolk’s seaport and airport
  • Site adjacent to a major hospital
  • Assumed loan – "loan prohibitive not to assume" – at 82% going-in LTV; deal required $10.4MM equity
  • Opportunity to create value through capital improvement followed by proactive onsite management and leasing

Execution:

  • Made major capital improvements to the physical plant including: elevators, systems, lobbies, bathrooms, hallways, roofs, HVAC, exterior painting and common areas
  • Re-signed the largest tenant (10% of the property) in first year of ownership
  • On-site management and leasing maintained stabilized occupancy while boosting rents

Results:

  • Property was refinanced three years after acquisition, returning 80% ($8.3MM) of investor capital
  • Continues to perform and make regular distributions (2009 equity holder cash-on-cash 9.6%; YTD 2010, 11.6%)

Greensboro Portfolio

Property:Greensboro Portfolio
Location:Greensboro, NC
Property Type:Office/Flex
Ownership Structure:AP-Adler Fund
Purchase Price:$14,285,000 ($47.72/sf)
Acquisition Date:June 2000
Date Sold:September 2006
IRR/Equity Multiple (Realized):27%/4.1x
TTM NOI at Purchase:$1,451,403
TTM NOI at Sale:$1,953,253
Occupancy at Purchase:83.0%
Occupancy at Sale:91.2%

Description:

  • Three-property, 21 building warehouse portfolio with accessibility and frontage off of major thoroughfares I-85, I-40
  • Adler evaluated market supply and anticipated growing demand for smaller-bay spaces that were not readily available in market
  • Opportunity to generate value through onsite management and deliver the product type/service demanded by the market

Execution:

  • Upgraded the property with new roofs, sealing and exterior paint
  • Repositioned the asset to exploit market demand for smaller-bay spaces
  • Able to increase rents while increasing occupancy to over 90%

Results:

  • Refinanced the asset with over 100% return of equity in four years
  • Sold the property after six-year hold for $23MM, yielding a 27% IRR and 4.1x multiple on equity

Investments & Acquisitions