Wien & Malkin Strategic Capital II & III have recently funded an eighteen month loan, convertible to a four-year preferred-equity investment with an option to extend for an additional five years.

The borrower will pay on an interest-only basis throughout the duration of the loan/investment. Serving as collateral is a Class A Office and Marina Complex located on the shore of Lake Minnetonka in Wayzata, MN. The Wayzata office market is a very attractive niche market that serves a highly affluent community of financial service specialists and other professionals, with strong barriers to entry by potential office and marina competition. Zoning is extremely restrictive and virtually all of the nearby lakefront is occupied by high-end residences. Additional security for the transaction includes other real estate.

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."

Wien & Malkin Strategic Capital thanks Murray Kornberg and Douglas Seylar of L.J. Melody & Company who acted as the broker for this transaction.