Inland American will invest $250 million, with an initialinvestment of $80.4 million, in a preferred equity investment withLIP Holdings. Inland will invest $25 million on a quarterly basisthrough year-end of 2008. Inland was advised in the transaction byGeorge Pandaleon, president of Inland Institutional CapitalPartners. The investment period is seven years, Pandaleon says.

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

Lauth was interested in the partnership because "this providesus some capital to run our business efficiently – bothcost-effectively and efficient for a time standpoint," Lauth chieffinancial officer Tom Peck says. LIP Holdings has about 6 millionsf in about 45 different properties, Peck says.