Lubert-Adler has been built on a fundamental, value-add real estate mindset. Since its founding in 1997, the firm has invested $6.5 billion of equity into $16 billion of assets pursuant to three value-add platforms:

• Value-Add Redevelopment
• Land Entitlement
• Residential Resort

Diversification

Lubert-Adler diversifies its investment base in four ways:

• Property Type: The firm seeks to achieve diversification across all property types in order to mitigate exposure to macro trends that may impact entire property segments.
• Geographic Region: The bulk of Lubert-Adler's investments are along coastal regions of the United States and other high barrier-to-entry geographic markets.
• Operating Partners: By spreading its capital among numerous operating partners with various specializations, the firm is able to eliminate excessive concentrations in execution risk.
• Number of Investments: All existing Funds have numerous investments.

Building Value

Once Lubert-Adler acquires and redevelops a property, the completed asset is targeted to result in a high-quality property at a cost well below its competitive set. The cost basis advantage is often achieved by executing a redevelopment at a significant cost advantage to new development. This is accomplished by:

• Acquiring the asset "wholesale" because it is often acquired vacant;
• Redeveloping with a local partner, whose cost structure may be more efficient; and
• Obtaining attractive third-party contributions from historic tax credits, governmental programs such as TIFFs, TADs and CDDs and seller financings.