Industry Commercial Real Estate | Founded 2004 | |
Headquarters Oak Brook, Illinois, United States Subsidiaries Inland American Lodging Group, Inc Type Real estate investment trust | ||
Inland american real estate investment trust top 8 facts
Inland American Real Estate Trust, Inc. (Inland American) is the largest non-traded real estate investment trust (REIT) in the United States with over $9 billion raised. The firm is one of several REITs that have been sponsored by affiliates of Oak Brook, Illinois-based Inland Real Estate Group of Companies, Inc. As of March 31, 2014, Inland American had 183,000, predominantly "mom-and-pop investors." Formed in 2004, Inland American owns commercial real estate in the following asset classes: lodging, multi-tenant retail, and student housing.
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The firm is a non-traded REIT, which is a company whose shares are not listed on an exchange. The shares are therefore relatively illiquid. Shares were sold through broker-dealers. While original investors bought in at $10/share, Inland American estimated its shares had a value of $4.00.
In March 2014, the firm announced that functions performed by its external, related-party managers would now be performed by the REIT itself. The firm has charged its investors over $1.4 billion in fees and expenses to pay for services provided by these external, related-party managers. It has also been observed that Inland American “bought a lot of property at the height of the market."
Liquidity and spin-off
Ten years after Inland American’s formation, original investors still have only limited options for liquidity. To date, Inland American has not announced any special distributions of proceeds from nearly $2.5 billion in assets already sold, nor does it intend to distribute proceeds from the announced sale of its $1.1 billion select-service hotel portfolio.
In August 2014, Inland American announced that it would spin-off 46 of its upscale hotels into a REIT named Xenia Hotels & Resorts (proposed NYSE ticker: XHR). On February 4, 2015 Xenia began trading on the NYSE under the ticker XHR. In this transaction Inland American shareholders received a proportional number of shares of XHR. The listing event was the first for the Inland Group since the “disastrous Wall Street debut” of its last REIT in 2012.