Investment History
Adler Group has partnered with institutional and private investors on acquisition opportunities 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 Area Property Partners, formally known as 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.
The Adler Evolution
Adler has a successful history of joint venture and investment fund activity, achieving desirable results for the company’s partners.
- 1981-1994: Joint venture with MetLife in development of 4.5MM sf Miami International Commerce Center (MICC). MICC is one of the largest mixed use parks in the Southeast U.S. and the pioneering project of Miami’s Airport West sub-market.
- 1998-2006: Full-cycle investments of approx. $78MM equity through AP-Adler Investment Fund as JV with Apollo Real Estate Advisors (AREA). Built portfolio to approx. six million square feet in assets from 1997-2006 with more than 2,000 tenants. AP-Adler Investment Fund full-cycle performance of 18.2% IRR and 2.3x equity multiple between.
- 2008: Launched the Helios Fund with a major European investor. The fund acquired and currently manages approximately $80MM in property assets totaling 750,000 square feet.
- 2010: The Adler Real Estate Fund raised approximately $20MM in equity capital. To date, two acquisitions have been made with another property under contract and expected to close in Q1 2011.
Adler has acquired, developed and managed in excess of 14 million square feet of industrial, office and retail real estate while consistently creating value for equity partners. Since 1999, the company has deployed $200MM in equity, including the Adler-AP portfolio (exited by 2006) and investments in its existing 2.5 million square foot portfolio.
Adler has built a strong acquisitions, development, leasing and property management platform as core of its value-add approach to real estate. The company’s approach is scalable and suited for operation as an institutional commingled fund manager.
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.