Wien & Malkin Strategic Capital IV recently funded a preferred-equity investment completing the capitalization of an institutional partner buy-out. The recapitalization is for the redevelopment of an existing retail property into a vertical big box retail destination center located near Coral Gables in Miami, Florida. Strategic Capital was able to meet a time-of-the-essence requirement to buy out an institutional partner, opening the door for greater value recognition by the entrepreneurial sponsor. The investment is for two-years with two one-year rights to extend.

The sponsor will pay a current preferred return with an IRR look-back enabling sponsor to fully maximize upside potential without dilution. The funds supplement a new first mortgage from the property's construction and re-development lender, PB Capital (Post Bank).

The project, Miracle Plaza, will be redeveloped into a 246,000 square foot, three level, vertical big-box retail center. Miracle Plaza is more than 81% pre-leased to tenants such as Bed Bath & Beyond, Marshall's, PetSmart, DSW, Office Max, Payless Shoes and Bally Total Fitness.

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 unique ability to recognize an attractive yet time-sensitive and complicated redevelopment opportunity on which we moved extremely quickly, closing very shortly after term sheet execution to meet an existing joint venture partner's tight recapitalization date."

Wien & Malkin Strategic Capital thanks Allen O'Brien and Thomas Gunter of IRE Capital Advisors & NetFunding.com who acted as the broker for this transaction.