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OAK BROOK, IL-Inland Institutional Capital Partners Corp, based here, is teaming up with LIP Holdings LLC, an affiliate of Indianapolis-based Lauth Investment Properties LLC for an expected $1 billion in developments. Inland Institutional Capital Partners Corp. negotiated the transaction for Inland American Real Estate Trust Inc.

Inland American will invest $250 million, with an initial investment of $80.4 million, in a preferred equity investment with LIP Holdings. Inland will invest $25 million on a quarterly basis through year-end of 2008. Inland was advised in the transaction by George Pandaleon, president of Inland Institutional Capital Partners. The investment period is seven years, Pandaleon says.

The investment will be used for medical, retail, industrial and office developments nationwide. Lauth has expertise in all four of those areas, which is one of the reasons Inland American was interested in the opportunity, Pandaleon says. The investment “allows Inland to participate in the development business and the returns from development in a very efficient way,” he says.

Lauth was interested in the partnership because “this provides us some capital to run our business efficiently–both cost effectively and efficient for a time standpoint,” Lauth chief financial officer Tom Peck says. LIP Holdings has about six million sf in about 45 different properties, Peck says.

There are, additionally, about 18 other land parcels that are in the initial states of development. The “largest profile” project is the construction of a 20-story, 390,000-sf office building in Charlotte, NC. Approximately one-third of the space will be leased to NASCAR and the building will be called Nascar Plaza. The building will be adjacent to the Charlotte Convention Center and will be integrated with the Nascar Hall of Fame, Peck says. The building is expected to be completed early in 2009.

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