Representatives from NorthStar did not respond to a request tobe interviewed. A spokesman for Inland said that he could notcomment because Inland American is still in its capital raisingperiod and is bound by strict SEC regulations. An SEC filing is notyet on file for the transaction from Inland American, which issponsored by an affiliate of the Inland Real Estate Group of Cos.Inc.

The investment is expected to yield a dividend of 10.5%,according to a statement from NorthStar. Anytime after the firstanniversary of the closing, Wakefield has the option to redeem theconvertible preferred interests, subject to a call premium whichdeclines over time. The equity may be converted into common equityin Wakefield anytime after the second anniversary of the closing,at Inland American's option, according to the statement. If InlandAmerican chooses to convert the interests, it would have anestimated 42% common equity ownership interest in Wakefield. IfInland American converts the interests, it would also have theability to contribute additional equity in Wakefield, according tothe statement.

NorthStar also issued $80 million of convertible notes in May."We are pleased to continue our healthcare real estate investmentstrategy in partnership with Chain Bridge Capital LLC and with newsponsorship from Inland American," NorthStar chairman and CEO DavidHamamoto said in the statement. "This recapitalization provides uswith the significant liquidity that we were seeking to achieve in asale of Wakefield, as well as the opportunity to continue toparticipate along with our partners in the value creationopportunity that we see in the healthcare real estate sector." Hiscompany also provides financing for retail and hotel projects, suchas Dallas-based Quanah Hospitality Partners LP developing up to 150Value Place hotels in the Southeast and Southwest markets.