Inland, Bank of America in $152M Sale-Leaseback
- Jul 15, 2008
Bank of America, NA and a joint venture involving Inland Real Estate Corp. have agreed on a sale-leaseback of four of the former’s office buildings. The buildings, in Moosic, Pa.; Las Vegas; Hunt Valley, Md.; and Rio Rancho, N.M., total 839,800 square feet. An Inland spokesperson declined to provide further information about the buildings. The aggregate purchase price is $152.6 million, of which Inland contributed about $60.8 million; an additional $90.3 million is being financed through a five-year, interest-only 5.6 percent fixed-rate bank loan. The buyer on the transaction is an existing JV of Inland Real Estate Corp. and Inland Real Estate Exchange Corp. (IREX). Under the terms of an existing joint venture agreement with IREX, Inland will earn acquisition and annual asset management fees. The Inland spokesperson told CPN that IREX did non contribute any capital to the transaction. The two companies are separate entities, and IREX is under The Inland Real Estate Group of Companies Inc. Inland Real Estate Corp. is a publicly traded REIT that owns interests in 146 retail centers and single-tenant properties, primarily in the Midwest, with total leasable space of more than 14 million square feet. One of the world’s largest financial institutions, Bank of America had net income of $1.21 billion in the first quarter, down from $5.26 billion a year earlier. The company is the No. 1 overall Small Business Administration lender in the U.S. and the No. 1 SBA lender to minority-owned small businesses.