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OAK BROOK, IL-Inland American Real Estate Trust Inc. is buying an 80% stake in a Florida building company for nearly $1.2 billion during the next 14 months. The company being acquired, Minto Builders REIT, will use Inland American Real Estate Trust’s investment to buy $2.7 billion in retail real estate, according to a filing with the Securities and Exchange Commission.

The Inland Group entity will control the MB REIT board of directors, with three of the five voting members. Meanwhile, Inland American is scheduled to buy $150 million in Minto Builders REIT common stock by Dec. 31, another $150 million by March 31 and $875 million by the end of 2006. If the stock buys are not made, Inland Western Retail Real Estate Trust must buy $300 million of Minto Builders REIT preferred stock.

Among the properties Coconut Creek, FL-based Minto Builders REIT has acquired recently are: a 24 Hour Fitness Centers in the Woodlands, a 19,230-sf single-tenant building in Houston; the 39,934-sf Pinehurst Shopping Center in Humble, TX; and 54,640-sf Paradise Shops in Largo, FL. The deals, closed this month, total $43.8 million. The 45,906-sf 24 Hour Fitness in the Woodlands commanded $13.6 million while Paradise Shops of Largo cost $12.8 million.

Minto Builders REIT will make additional purchases using 55% leverage, according to the SEC filing obtained by GlobeSt.com. The first $294 million in acquisitions with Inland American money will be Section 1031 exchanges. Citigroup Global Markets Inc. and TD Securities Inc. brokered the stock deal.

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