Adler Group Forms $100M Fund, Acquires Tampa Property
- Oct 29, 2008
Adler Group formed its first discretionary $100 million fund to have capital available for the purchase of income producing commercial properties. The fund is named Helios AR Real Estate Fund I, and is being managed by Adler Helios MMI L.L.C., an affiliate of the Adler Group, with Assos Capital USA L.L.C. acting as co-manager. The Fund has already made two acquisitions, including Breckenridge Park in Tampa, Fla., which closed on October 15. The Helios AR Real Estate Fund I will invest in multi-tenant office, flex, industrial and retail properties and other real estate related investments in the Southeast and Mid-Atlantic regions. The Fund closed on its first acquisition on August 22, 2008, consisting of a 252,000-square-foot portfolio in Naples. The Tampa acquisition is the second major transaction for the Fund to close before the end of 2008. Breckenridge Park is a 15-building, 332,582-square-foot Class A mixed-use complex situated at the interchange of I-4 and U.S. 301 in East Tampa. “For decades, investors have partnered with Adler Group because of our depth of industry knowledge and trusted us to deploy and manage our joint capital,” Michael Adler, chairman and CEO of Adler Group said in a release. “With the current market conditions it is important to have discretionary funds available in order to acquire high-quality assets at reasonable pricing.” The Fund’s anchor investor is an affiliate of a high net worth European family involved in shipping, banking, finance, real estate, energy, media and entertainment. In addition to an equity commitment, this investor brings substantial business and asset management expertise to the Fund. Michael M. Adler noted that Adler Group and its European partner have successfully partnered on another real estate investment project in the past, a property in Tampa that will be transferred into the new fund. Adler Group’s co-manager for the Fund is Assos Capital USA L.L.C., an affiliate of Assos Capital Limited. In addition to its co-management duties, the Assos Capital team manages a portfolio of commercial real estate assets in excess of $325 million, comprising office and retail properties. Adler Group expects to place $100 million of equity over the next 18 to 24 months. Because of the intention to be in the fund management business for the long term, Adler Group and Assos will begin formation of their second fund in the near future.