Inland Eliminates All Transaction-Based Fees for Non-Traded REITs
Inland Real Estate Investment Corporation, one of the nation’s largest sponsors of non-traded real estate investment trusts, will eliminate all real estate-related transaction fees for currently offered and future non-traded REITs. Real estate-related transaction fees are typically levied by sponsors for the acquisition, disposition and financing of real estate.
“The elimination of transaction-based fees will have a positive impact on entity level performance,” said Mitchell Sabshon, president and chief executive officer of Inland Investments. “By eliminating transaction fees, we have the opportunity to improve funds from operations and net income, reduce potential conflicts of interest, and better align our interests with those of our REIT investors.”
Sabshon added, “Eliminating these transaction-based fees, and limiting compensation to a basic business management fee and a performance-based fee earned only when a REIT’s return exceeds the performance target, creates a business model that leads the nonlisted REIT industry into the future.”
Daniel Goodwin, chairman of The Inland Real Estate Group of Companies, noted that the fee elimination allows the firm to introduce a “lower, institutional-type compensation structure” to its non-traded REIT offerings.
Inland Real Estate Investment Corporation is a sponsor of real estate securities and a part of The Inland Real Estate Group of Companies, one of the nation’s largest commercial real estate and finance groups. For more than 45 years, Inland has been engaged in various facets of real estate industry including property management, leasing, marketing, acquisition, real estate brokerage, development, redevelopment, construction, real estate financing and other related services.
