Overview and Strategy
Alder Strategic Capital, the investment arm of ALDER, invests exclusively in commercial real estate, primarily focused on grocery anchored and necessity-based retail shopping centers, with a secondary concentration in office and multi-family assets.
We acquire direct ownership interests, limited partnership interests, structure mezzanine debt and make preferred equity investments.
Our Competitive Advantage
Alder is well positioned to capitalize on a wide variety of opportunities by drawing on decades of experience of underwriting, investing, managing, selling and leasing real estate for our own account and for third parties. Our principals have an average of 20 years of commercial real estate experience.
On select transactions, we structure joint ventures with strategic partners who have proven track records and superior expertise in their regions and market niche.
Alder identifies investment opportunities that provide compelling risk-adjusted returns that allows us to create significant value for our partners and investors.
Strategy
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Buy right
We evaluate downside risks against potential for upside to determine if the acquisition meets the partnership’s return objectives and risk/reward profile. -
Add value
After acquisition, we work to increase property value by designing and following a customized business plan for each asset. Value add strategies may include, physical improvement upgrades, leasing vacancies, repositioning the property, raising below-market rents and optimizing operating expenses. -
Sell or hold
We time the holding period of our investments to align with the objectives of each partnership, market conditions and the property-specific value add strategy. We may sell the property within three to five years or refinance and hold for cash flow, further appreciation and debt reduction.
Opportunities In The Current Market
- Less competition for purchasing assets that are too large for the small investor, but too small for the REITs and institutions provides an opportunity in this segment.
- More stringent lending practices makes it difficult for owners to refinance and obtain the loan-to-values they may need. Owners may often be forced to sell at favorable prices.
- Little threat of new supply as construction is at record lows.
- Low interest rates result in strong cash-on-cash returns.
General Benefits of Real Estate as in Investment
Real estate has proved to be a superior investment vehicle in the United States over the last fifty years and an important part of a diversified portfolio. Property investment offers inflation-adjusted cash flow, historically steady appreciation and the benefit of leverage that may further increase returns. In addition, real estate enjoys favorable tax treatment including depreciation deductions and opportunities to defer capital gains.
Sponsor Equity
Alder provides co-investment capital to experienced real estate sponsors for acquisitions or recapitalizations. We’re looking for commercial real estate operators with proven track records in their niche and regional market sectors.
Benefits of Alder’s Joint Venture Equity Program
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Save Time and Reduce Expenses
Save the extra time and reduce the expense of raising capital. Instead of dialing for dollars from friends and family for partial interests, or enduring the bureaucratic headaches associated with institutions, rely on Alder to provide the equity necessary to get the deal done with one check. -
Increase Sponsor Returns and Retain Fees
Our typical structure provides from 80 to 90 percent of the required equity. After a preferred return is paid, sponsors earn a promoted interest profit split, as well as market rate fees for managing, development and leasing. -
Take Advantage of More Opportunities
Diversify and spread your capital among more assets and control a larger real estate portfolio. -
Simplify Investor Relations
Rather than fielding questions from small investors, report to one. Our reporting requirements are clear and straightforward. -
Reliable and Fast Capital
We can review a potential investment and commit our capital quickly. Our review period runs from 15 to 30 days. -
Flexible Co-Investment Structures
We may invest as limited partners, preferred equity holders or provide mezzanine financing. -
Commitment size
From $2 to $40 million
ACQUISITION CRITERIA
Alder is actively seeking to acquire core plus and value-add properties, primarily in the northeast region.
- Property Types:
Community and neighborhood retail centers are preferred. Multi-family and office properties are considered under compelling circumstances. We do not buy vacant land. - Regional Focus:
Northeast and Mid-Atlantic
NY, NJ, CT, PA, RI, MA, VT, NH, MD, VA, DE - Yield:
We target risk-adjusted returns starting in the mid-teens. The ideal property has some opportunity to add value in the form of either vacancy to lease up, below market rents or the asset can simply be purchased at an attractive yield going in. - Size:
Minimum purchase price $4 million. - Financing:
Flexible. Will assume debt or obtain new debt with no financing contingencies. All cash may be paid under certain circumstances. - Closing:
Within 30 to 45 days, or flexible to meet seller's requirements.
Submittal Procedure
For our preliminary review, please submit a full sales package or offering memorandum, if available, including:
- Current Rent Roll
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Income / Expense Statements
(Including actual historical performance as well as pro forma projections.) - Argus file (If available)
- Street address, rentable square footage and lot size
- Site Plan
- Photos and aerials
- Store sales figures for retail tenants
- Existing debt information, if applicable
Submit To
Ian DeutschALDER Property Group
228 Park Ave S #81420
New York, NY 10003
P: 212.372.6000 x317 Email
acquisitions@alderprop.com
Please submit via email preferably or by clicking below:
Email Submittal