EXHIBIT 10.3
PROPERTY ACQUISITION
AGREEMENT
THIS PROPERTY ACQUISITION AGREEMENT
(this “Agreement”) is entered into as of
August 31, 2005 by and between INLAND REAL ESTATE
ACQUISITIONS, INC., an Illinois corporation
(“Acquisitions”), and INLAND AMERICAN REAL ESTATE
TRUST, INC., a Maryland corporation (the
“Company”). Acquisitions and the Company are
sometimes referred to herein individually as a “Party”
and collectively as the “Parties.”
WHEREAS, the Company is in the
business of, among other things, acquiring and managing real
estate, primarily retail properties and multi-family, office and
industrial buildings located in the United States and Canada, and
other Real Estate Assets (as defined below);
WHEREAS, Acquisitions is in the
business of acquiring and assisting certain third parties in
acquiring assets, such as the Real Estate Assets (as defined
below);
WHEREAS, Acquisitions is an indirect
wholly-owned subsidiary of The Inland Group, Inc., an Illinois
corporation (“The Inland Group”);
WHEREAS, Robert D. Parks is an
officer and director of the Company and a stockholder and director
of The Inland Group;
WHEREAS, concurrent herewith, the
Company is entering into the Business Management Agreement (as
defined below) with an affiliate of Acquisitions; and
WHEREAS, Acquisitions is willing to
grant the Company certain rights to acquire Real Estate Assets
identified by Acquisitions.
NOW, THEREFORE, in consideration of
the mutual promises and covenants contained herein, and in
consideration of the amounts payable to affiliates of Acquisition
under the Business Management Agreement, the Parties agree as
follows:
1.
Incorporation of
Recitals . By this reference, the
recitals set forth above are hereby incorporated into this
Agreement as if fully set forth herein.
2.
Definitions
. The
following capitalized terms used in this Agreement shall have the
following meanings:
(a)
“Business
Manager” means Inland American Business Manager &
Advisor, Inc., an Illinois corporation.
(b)
“Business
Management Agreement” means that certain Business Management
Agreement of even date herewith by and between the Company and the
Business Manager.
(c)
“Community
Center” means real estate improved for use as a multi-tenant
shopping center with gross leasable retail area exceeding 150,000
square feet but less than 300,000 square feet.
