Phoenix, AZ (September 12, 2014) – Woodland Hills-based Adler Realty Investments just completed two $16 mil transactions, one an industrial property sale in Chatsworth and the other an office acquisition in Phoenix. The transactions were part of a 1031 exchange.
In the sale, Adler collected $16.8 mil for Chatsworth Industrial Park, a 152.9k sf ($110/sf) industrial park at the intersection of Nordhoff and Independence in Chatsworth that was purchased by Rexford Industrial Realty.
Adler acquired the project two years ago, when the seven-building project had been in bankruptcy due to a default of the original ownership. Adler was able to create a reorganization plan with the current lender and work through the intricate procedures to get the plan approved and bring the ownership entity out of bankruptcy. Adler renovated the project and quickly brought the occupancy up to 100% with multiple lease transactions.
Bennett Robinson, Craig Peters, and Robert Valenziano of CBRE represented both the buyer and the seller in this deal. Matthew Sullivan from Lee & Associates brokered the purchase for Adler.
In the acquisition, Adler paid $16 mil for four multi-tenant office buildings totaling 164k sf in Phoenix. The property is part of a larger 80-acre mixed-use park called “Corridors” in the Deer Valley submarket of Phoenix. The Alter Group, the developer of the park, was the seller in the transaction.
The office campus is currently 86% leased, including a 41k sf lease with the State of Arizona signed while the property was under agreement for sale. Adler plans to aggressively lease the remaining 23k sf of vacant space at the project and provide a steady cash flow stream for its investors.
James Clark, III of EnTrust Realty Advisors represented both parties in this transaction.
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