ORLANDO- The Adler Real Estate Fund I, a closed-enddiscretionary fund, purchased its first property, the92,000-square-foot Winter Garden Business Park, an eight-buildingoffice park in the Orlando suburb of Winter Garden. The price forthe three-year-old property, an REO, was $6.2 million, includingclosing costs.

The original developer of the Winter Garden Business Park lostit when he was unable to pay on a construction loan, says MatthewL. Adler, chief executive officer of the Adler Fund, which is basedin Miami. He declined to give the name of the lender.

While the developer of the Winter Garden property was successfulenough to get the occupancy of the park up to 78%, saysAdler, by the time the project was finished, times had changed.“The new rents were lower (than those in the pro forma) and the caprate was higher, so the value of the project was less than the loanamount,” he says.