AR Capital LLC agreed to buy 294 commercial properties from Inland American Real Estate Trust Inc. for $2.3 billion including debt.
AR Capital made the acquisition on behalf of certain affiliates, Inland American said in a statement today. The transaction could generate net proceeds of about $1 billion for Inland American and will be paid over nine months, the Oak Brook, Illinois-based investor said.
“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 the statement.
AR Capital will assume about $795 million of debt as a result of the deal. The transaction’s value also includes repayment by Inland American of about $361 million of debt.
Inland American, owner of 45 million square feet (4.2 million square meters) of business properties, will use the capital raised to reduce debt and invest in stores, lodging and student housing. It may also buy back shares, according to the statement.
Goldman Sachs Group Inc. acted as financial adviser to Inland American and Lathan & Watkins LLP provided legal advice to the investor, according to the statement.
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