This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

The Deal: Inland Sells $2.3 Billion Portfolio to AR Capital

NEW YORK ( TheStreet) - AR Capital LLC said Friday it would acquire a portfolio of 294 commercial properties from Inland American Real Estate Trust Inc. in a cash-and-debt deal valued at $2.3 billion.

Terms of the deal call for New York-based AR Capital to assume $795.3 million in debt for the portfolio of retail, office and industrial assets. Inland said it expects to realize up to $1 billion in net proceeds from the sale after repaying about $360.9 million in debt, with the Oakbrook, Ill.-based company saying it intends to use proceeds to invest in new assets and to reduce debt.

"We are very pleased to have reached this agreement, which represents the culmination of a robust evaluation process to achieve maximum value for this portfolio of core net lease assets," Inland American president Thomas McGuinness said in a statement.

"Our board of directors, with the assistance of legal and financial advisors, thoroughly evaluated the strategic alternatives for this portfolio with a goal of maximizing our return on these assets and supporting Inland American in the execution of our long-term strategic plan."

The deal comes at a time of transition for Inland, which as of March 31 owned 759 properties with 45 million square feet of commercial space, 4,919 conventional multifamily units, 5,332 student housing beds and 16,407 hotel rooms.

The company said it is seeking to revamp its portfolio to focus on multitenant retail, lodging and student housing, and said it is also evaluating ways to use a portion of the proceeds of this sale to provide stockholder liquidity including a potential share repurchase.

Goldman, Sachs & Co. was hired as financial adviser to Inland American, with Latham & Watkins LLP acting as legal counsel.

A Skadden, Arps, Slate, Meagher & Flom LLP team led by partners Rodd Schreiber, Chuck Smith, Nancy Olson and David Levy served as special counsel to Inland's board of directors.

Written by Lou Whiteman in New York

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
GS $156.47 0.00%
AAPL $94.02 0.00%
FB $104.07 0.00%
GOOG $683.57 0.00%
TSLA $162.60 0.00%


Chart of I:DJI
DOW 16,204.97 -211.61 -1.29%
S&P 500 1,880.05 -35.40 -1.85%
NASDAQ 4,363.1440 -146.4150 -3.25%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs