Wien & Malkin's Vail investment.

Wien & Malkin Strategic Capital IV, L.P. has made a $9.4 million preferred-equity investment in a Four Seasons-flagged hotel, condo and fractional unit development under construction in Vail Village, Colorado.

The investment, which is for a term of three years, with two one-year extension options for the developer, completes a financing package in excess of $225 million for the 121-room luxury hotel and 35 condo apartments, 16 of which are being sold in whole-ownership units and the remainder in fractional units.

The developer is Vail Development. LLC, headquartered in Minneapolis. Salt Lake City-based Layton Construction Company is the general contractor. The project, for which ground was recently broken, is scheduled for completion in August 2009. Wien & Malkin Strategic Capital worked with the senior and mezzanine lenders "quickly to fill a gap between the institutional package and the sponsor's equity," says George S. Perry, senior vice president and director of investments for W&M Properties, which sources and structures investments for the Strategic Capital program.

Wien & Malkin Strategic Capital IV is the latest in a series of funds that provide capital to real estate entrepreneurs in need of special-situation financing, either as mezzanine debt or structured equity.

W&M Properties is the acquisition, management, construction and marketing arm of the Malkin family, which owns office, retail and residential property in eight states.