Adler launches $150M real estate fund

Fund will target 13-14% IRR

Matthew Adler of Adler Real Estate Partners
Matthew Adler of Adler Real Estate Partners

Adler Real Estate Partners recently launched a $150 million commercial real estate fund, its largest fund to date.

Adler Real Estate Fund IV will target light industrial real estate and office properties in U.S. markets with strong growth, according to data from Preqin, an alternative asset industry database. It’s seeking a 13 percent to 14 percent internal rate of return.

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Matthew Adler, founder and managing partner, and the Adler management team bought out Kawa Capital Management and other shareholders effective Jan. 1, according to Adler’s website. The joint venture together raised capital for three funds, including the Adler Kawa Real Estate Fund III, a $110 million investment vehicle that closed to new investors in July 2016. It’s almost fully invested, Adler said.

Aventura-based Adler Real Estate Partners focuses on buying properties in which the firm invests about $10 million to $20 million of equity in a roughly $50 million deal. “We get to be the big fish in the small pond. That’s where we really excel,” Matthew Adler said.

The company owns office and industrial real estate in 11 markets, including Dallas, Houston, Austin, Charlotte, Raleigh, Baltimore, Los Angeles, Birmingham and South Florida. It’s looking to be back in markets like Tampa, Orlando and Atlanta, Adler added.