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OAK BROOK, IL-Inland Institutional Capital Partners Corp, based here, is teaming up with LIP Holdings LLC, an affiliate of Indianapolis-based Lauth Investment Properties LLC for an expected $1 billion in developments. Inland Institutional Capital Partners Corp. negotiated the transaction for Inland American Real Estate Trust Inc.

Inland American will invest $250 million, with an initial investment of $80.4 million, in a preferred equity investment with LIP Holdings. Inland will invest $25 million on a quarterly basis through year-end of 2008. Inland was advised in the transaction by George Pandaleon, president of Inland Institutional Capital Partners. The investment period is seven years, Pandaleon says.

The investment will be used for medical, retail, industrial and office developments nationwide. Lauth has expertise in all four of those areas, which is one of the reasons Inland American was interested in the opportunity, Pandaleon says. The investment "allows Inland to participate in the development business and the returns from development in a very efficient way," he says.