Don Stephens, who runs D.R. Stephens with his son Lane, has beenfocusing solely on the type of product the fund plans to acquirefor the past eight years. Don Stephens tells GlobeSt.com the fundwill invest the equity over a two- to three-year period and willhold the assets for between five and seven years. After managementfees, he expects the IRR after management fees will range from themid- to high teens.

The Stephens' like this particular arrangement in part becausethe funds are in a blind pool, which means they will be able to actmore quickly. "We have done a lot of investing with wealthyindividuals; the problem with that is we'd find a property and thenspend three months raising money while other good deals came andwent," Don Stephens says. The company also has invested withinstitutional partners such as Buchanan Street Partners and MerrillLynch, but never in a blind pool format.

Inland American Real Estate Trust, Inc. is a real estateinvestment trust with a portfolio that includes wholly owned andjoint venture interests in 106 office, retail, industrial andmultifamily properties. Per that partnership agreement with D.R.Stephens, Inland American will be entitled to a preferred return onits invested capital equal to 8.5% per annum, on a cumulativebasis, compounding quarterly prior to any distributions being paidto D.R. Stephens.