Inland Drops Transaction Fees for Unlisted REITs

Mitchell Sabshon

CHICAGO—Inland Real Estate Investment Corp., a sponsor of unlisted real estate investment trusts, has just decided to eliminate all real estate-related transaction fees for currently offered and future unlisted REITs. Officials from the Oak Brook, IL-based company tell GlobeSt.com that the move sets Inland Investments apart from the competition and allows more of investors’ funds to go toward acquisitions, and more closely aligns the investors’ interests with the company.

“It’s a risk for us, but in the long run, this is the right thing to do,” says Mitchell Sabshon, president and chief executive officer of Inland Investments, part of The Inland Real Estate Group of Cos., Inc. If, for example, the transaction fees amounted to 2%, that means the company could give up $20 million on a $1 billion portfolio, and instead, plough that equity into actual assets. “We think by eliminating these fees we can deliver better performance for investors.”