Los Angeles (December, 2015) – Adler Realty Investments, Inc. (Adler) just completed a reverse exchange with the sale of its 100 West Broadway office building in Long Beach, California. The 195,000 square foot, six story building was sold for $35,200,000. Adler had renovated the buildings common areas and operated it for the past ten years.
Adler had recently acquired two properties in the Los Angeles area which were the up legs for the exchange. The first was a 100,000 square foot office building in Calabasas, which Adler acquired for $24,000,000. Located at 23901 Calabasas Road the property is 96% leased. Adler is currently renovating the common areas of the property and plans to hold the asset for cash flow.
The second properly is a refrigerated food distribution warehouse in Vernon which was acquired for $9,000,000. The property is located in a high demand industrial area of Los Angeles at the intersection of Santa Fe Avenue and 55th Street. The project is a future development site for Adler due to excess land and under improved site.
“Executing the reverse exchange was strategic for us in order to defer a tax event on the large gains of the ownership entity”, said Michael Adler, president of Adler Realty Investments. “We are excited about the two new projects which should provide our investors with good cash flow and above market returns”.
Kevin Shannon of CBRE represented both parties in this transaction.
