W&M Strategic Capital adds $35M to mezz program.As it does from time to time, Wien & Malkin Strategic Capital (SC) has added capital to its mezzanine mez·za·nine n. 1. A partial story between two main stories of a building. 2. The lowest balcony in a theater or the first few rows of that balcony. and preferred-equity investment program, in this instance $35 million, bringing total assets under management Assets Under Management (AUM) is a term used by financial services companies in the mutual fund and money management or investment management business to gauge how much money they are managing. to $103.5 million. Amid strong deal origination, SC has begun to partner with other sources of subordinate capital and concluded its first purchase of mezzanine debt from a lender seeking to add liquidity to its balance sheet. SC recently purchased the junior, unsecuritized piece of an existing loan secured by the office building at 119 West 40th Street in Manhattan. SC operates a series of limited partnerships in parallel that have invested more than $125 million in mezzanine and preferred-equity financing, mostly to fill funding gaps for owner/developers. "In the most recent four-week period we signed four letters of intent for new originations totaling $20.5 million," says George S George, river, c.345 mi (560 km) long, rising in a lake on the Quebec-Labrador boundary, E Canada. It flows N through Indian Lake (125 sq mi/324 sq km) to Ungava Bay (an arm of Hudson Strait). . Perry, senior vice president and director of investments at W&M Properties, which sources and structures investments for the SC program. "Quality deal flow for us is stronger than ever." Perry added, "The increased deal flow is the result of the current credit contraction. "We find that owner/developers need funds that cover special situations and aren't readily available from institutional sources. They may wish to recapitalize re·cap·i·tal·ize tr.v. re·cap·i·tal·ized, re·cap·i·tal·iz·ing, re·cap·i·tal·iz·es To change the capital structure of (a corporation). re·cap a property without incurring a pre-payment penalty on the senior debt, buy-out a partner, or simply obtain seed money for the next project, to cite a few examples. There's always a need." As with all of Wien & Malkin's investment programs, the most recent $35 million in new capital was raised from accredited investors Accredited Investor A term used by the Securities and Exchange Commission (SEC) under Regulation D to refer to investors who are financially sophisticated and have a reduced need for the protection provided by certain government filings. Also known as "qualified purchaser". , according to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. W&M's Ned H. Cohen cohen or kohen (Hebrew: “priest”) Jewish priest descended from Zadok (a descendant of Aaron), priest at the First Temple of Jerusalem. The biblical priesthood was hereditary and male. . "We attract capital from wealthy individuals who meet accreditation standards established for private placement offerings. We have seen an increase in the number of private investors seeking the high current return and mid-term liquidity offered by our programs," said Cohen. "As real estate owners and managers ourselves, we have the entrepreneurial mindset mind·set or mind-set n. 1. A fixed mental attitude or disposition that predetermines a person's responses to and interpretations of situations. 2. An inclination or a habit. and the agility to respond quickly when there is a special funding need," said Perry. "That's a key reason why Strategic Capital has become an established source for supplemental or replacement funding." W&M Properties is the acquisition, management and marketing arm of the Malkin family, which owns more than 11 million square feet of income property in more than a dozen states. |
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