One of Lexington's JV partners, Inland American Real Estate Trust Inc., announced a $100-million investment in Concord Debt Holdings, itself a JV of Lexington and Boston-based Winthrop Realty Trust, to make new investments. "This is a very positive development, as it provides Concord with growth capital while allowing Lexington to reduce its capital investment to $100 million over time as loans in that portfolio mature," Eglin said in discussing his company's Q2 results.

As a result of Chicago-based Inland's investment in Concord, "we're executing on our strategy of enhancing our return on equity in Concord while lowering our exposure," Eglin said. Inland and Lexington entered into a $1.4-billion JV last August and Q2 '08 saw the final closing on the initial assets for Lexington's co-investment program with Inland.

"We remain very optimistic about our opportunities to grow this program," Eglin said, adding that the JV has committed an aggregate of $150 million of capital to make new investments, for a total buying power of approximately $400 million. He said Lexington's investment in Concord will yield about 10% for '08, and he's optimistic that his company will begin a new JV with another institutional investor "later this year."