OAK BROOK, IL-Inland American Real Estate Trust Inc. has invested approximately $1.2 billion in a joint venture REIT with Minto Builders Inc. Inland owns approximately 98% of the REIT’s outstanding common stock, and the investment fulfills Inland’s obligation to the joint venture.

The joint venture has acquired a total of 78 properties nationally with a mix of different type of properties and a total of 12.1 million sf of gross leasable area. The portfolio includes 52 retail properties, 12 office properties, 13 industrial properties and one multifamily property, says George Pandaleon, president of Inland Institutional Capital Partners. The portfolio is anticipated to reach approximately $2.7 billion, he says.

Inland entered into the joint venture with Minto Builders in October. As part of the joint venture, Minto invested $300 million and Inland American Real Estate Trust was obligated to invest $1.2 billion and acquire properties with a total value of approximately $2.7 billion, including the IDS Center in Downtown Minneapolis. “It is probably the most successful launch of a REIT that Inland has very had in terms of building up the company and delivering good solid returns to our shareholders very quickly,” he says.

Pandaleon tells GlobeSt.com he believes the REIT was successful because it had a variety of types of property. “This REIT, unlike some of our previous REITs, has a mandate to buy different property types,” he says. The joint venture was able to acquire a $450-million portfolio of retail properties in the Houston area early on in the REIT. “By bringing in capital from our partners in this venture, we were able to acquire that very early in the life of the REIT well before we would otherwise have been able to buy anything of that scale,” he says.

Approximately 40% of the $5 billion of shares were sold for the initial registration, Pandaleon says. “In terms of what happens next, you will see the Inland American REIT being an aggressive acquirer of properties and also probably complete other ventures with other partners,” he says.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?


© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

GlobeSt Net Lease Spring 2024Event

This conference brings together the industry's most influential & knowledgeable real estate executives from the net lease sector.

Get More Information


Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2024 ALM Global, LLC. All Rights Reserved.