Inland is doing the deal through its Inland American Real EstateTrust unit, which owns 882 properties across a variety ofcommercial sectors. It is initially investing $20 million into theventure, and executives expect to increase that to $100 millionover the next 18 months.

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"The current dislocation in the credit markets has producedattractive opportunities to invest in commercial real estateloans," says George Pandaleon, president of Inland InstitutionalCapital Partners, in a press release.

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Inland's contributions toward Concord Debt will be used toacquire additional debt instruments. The firm's management isexpecting a 10% return on its investment.

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Says Michael Ashner, Winthrop's chief executive officer,Inland's investment "will enable the company to continue to growand improve its earnings through the acquisition of higher yieldingdebt investment opportunities reflective of the current real estateloan market."

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Winthrop is the owner of retail, offices and industrial assetsacross the nation. New York City-based Lexington Realty Trustspecializes in the investment of single-tenant commercialproperties and owns 311 of those assets.

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