Wien & Malkin Strategic Capital II, III & IV have recently funded a ten-year preferred-equity investment that completes the recapitalization of a garment center building at 1370 Broadway, at West 37th Street, Manhattan.

The sponsor will pay on an interest-only basis throughout the duration of the investment. The funds supplement a new first mortgage from the property's senior lender, Wachovia National Bank.

The 17-story, 250,000-square-foot property, built in 1928 and extensively modernized in the mid-1990s, is 95% occupied. Its major tenants include apparel company Paul Davril, known for its Kenneth Cole and Ecko Red brands, and Rosenthal & Rosenthal, a major factoring and financial services firm serving the apparel industry.

George S. Perry, Senior Vice President and Director of Investments for W&M Properties, which sources and structures investments for the Strategic Capital program notes, "this transaction demonstrates once again our ability to creatively free borrower trapped equity in transactions encumbered with restrictive senior financing covenants prohibiting subordinate debt."