If you read through all the promotional spin on Inland's earnings call, it appears that demand in the 1031- TIC exchange market may be slowing down.
This year, we anticipate acquiring $100 million of assets for the IREX JV, with potential upside for more depending on the acquisitions market. According to our IREX partner, the slowdown in transactional volume and the credit crunch have had some impact on the tenants in common industry. There are fewer sellers in the marketplace seeking to roll the real estate proceeds into another property. The volume that is out there is going to quality sponsors. Our IREX partner continues to take market share as a result of this flight to quality. IREX is considered one of the best 1031 exchange sponsors in the business.
While some big sponsors are having difficulty in this credit constrained market, IREX is able to leverage the Inland group's established banking relationships to obtain financing for big dealings. In fact, IREX is projecting that 2008 should be another record year for their company in terms of transactional volumes and net income.
