Inland American Invests $1B in Joint Venture

OAK BROOK, IL-Inland American Real Estate Trust Inc. has invested approximately $1.2 billion in a joint venture REIT with Minto Builders Inc. Inland owns approximately 98% of the REIT’s outstanding common stock, and the investment fulfills Inland’s obligation to the joint venture.

The joint venture has acquired a total of 78 properties nationally with a mix of different type of properties and a total of 12.1 million sf of gross leasable area. The portfolio includes 52 retail properties, 12 office properties, 13 industrial properties and one multifamily property, says George Pandaleon, president of Inland Institutional Capital Partners. The portfolio is anticipated to reach approximately $2.7 billion, he says.

Inland entered into the joint venture with Minto Builders in October. As part of the joint venture, Minto invested $300 million and Inland American Real Estate Trust was obligated to invest $1.2 billion and acquire properties with a total value of approximately $2.7 billion, including the IDS Center in Downtown Minneapolis. “It is probably the most successful launch of a REIT that Inland has very had in terms of building up the company and delivering good solid returns to our shareholders very quickly,” he says.