Articles Tagged with Inland American Real Estate Trust

The California Department of Business Oversight is looking into the Inland American Real Estate Trust Inc. This is the largest nontraded real estate investment trust with $9.7 billion in assets. Earlier their year, Inland American announced to shareholders that it would become a self-managed REIT.

Inland American is one of the big REITs that experienced a swift drop in valuation when the real estate market crashed in ’07-’08. While the nontraded REIT is currently not under investigation, state regulators want clarification about the offering price in the recent repurchase of shares of the REIT.

In a letter written last month, the department’s corporation counsel Danielle Stoumbos asked why Inland is selling shares at up to $8.03/share in its distribution reinvestment plan when the share price pursuant to the latest tender offer is just $6.10 to $6.50. The state also wants to know how Inland compensates its manager/internal adviser and whether there might be conflicts of interest.