X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

(Read more on the debt and equity markets.)

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.

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
  • 3 free articles* across the ALM subscription network every 30 days
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

GlobeSt

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 © 2020 ALM Media Properties, LLC. All Rights Reserved.