Investment History

Adler Group has partnered on acquisition opportunities with institutional and private investors that have consistently provided strong returns.

Throughout its 50-year history, Adler Group and affiliates have acquired and developed in excess of 18 million square feet of industrial, office, retail and residential real estate. Adler Group has a long history of partnering with some of the nation’s premier financial organizations, including MetLife, Apollo Real Estate Advisors, GMAC and more.

AP-Adler Investment Fund

In 1998, Adler Group partnered with New York-based Apollo Real Estate Advisors (“Apollo”) to establish the AP-Adler Investment Fund (“AP-Adler”). With investment capital of $70 million from Apollo and $12 million from Adler, AP-Adler acquired, developed and managed more than 6 million square feet of industrial and flex/office properties, valued at more than $300 million.

While initially focused on Florida’s major markets, in 2000 AP-Adler expanded into Atlanta and North Carolina. In 2004, based on their holding period, Apollo opted to sell its portion of the investments, while Adler Group took properties in exchange for its partnership interest. Adler Group received approximately 1 million square feet of buildings and land in Georgia and Florida.

Adler Group continued to manage and oversee the sale of Apollo’s approximately 4 million square feet of remaining property, and Apollo achieved property level Internal Rates of Return (IRR) of approximately 18%. In addition to Apollo’s investment in AP-Adler, the firm invested $4 million in a separate Adler Group partnership which owned four properties aggregating 1.3 million square feet. Three of the properties were sold at substantial IRRs, and Apollo’s interest in the fourth property was acquired by Adler Group at a price approximating its total original investment.

Retail Land Bank

In late January 2006, Adler Group formed a Retail Land Bank with Apollo. The joint venture acquired three parcels, deploying $24 million. The Land Bank focuses on buying entitled retail land in the Southeastern United States with the intent of holding the property for a period of 3-5 years in advance of development.

Private Investments

Throughout our history, Adler Group has acquired or developed properties with high net worth investors such as Interstate Corporate Center (ICC), Kendale Office Center and The Offices of Kings Landing. A majority of the investors in our offerings have invested with us multiple times over many years. ICC was acquired in 2004 for approximately $31 million with an equity raise of $10 million. Through a 2007 refinance, 80% of the equity was returned.

Adler Group 1031

In 2003 and 2004 Adler Group acquired three office properties through a Tenant in Common (TIC) Program, which allowed investors to join together to own an undivided fractional interest in investment properties for purposes of deferring income taxes. These investors benefited from the company's extensive industry knowledge, marketplace expertise, and management infrastructure. Two of the properties were sold and the investors realized returns at or above what was projected. The third property is operating as projected.