Inland Institutional Capital Partners Corp. has negotiated an agreement on behalf of Inland American Real Estate Trust Inc. to invest up to $100 million in Concord Debt Holdings LLC, a joint venture debt platform between Winthrop Realty Trust and Lexington Realty Trust formed to originate and acquire real estate securities and real estate related loans.â�¨
Under the terms of the agreement, Inland American says it will initially contribute $20 million, with additional contributions up to $100 million in total over an 18-month period, subject to various terms and conditions.
Future contributions made by Inland American will be used by the joint venture primarily for the origination and acquisition of additional debt instruments. Inland American will receive a 10% priority return on its capital from operating cashflow, as well as a priority return of its capital.â�¨
‘The current dislocation in the credit markets has produced attractive opportunities to invest in commercial real estate loans,’ says George A. Pandaleon, president of Inland Institutional Capital Partners. ‘This new partnership enables Inland American to capitalize on Concord's established, fully integrated business platform.’
Source: Inland Institutional Capital Partners