Case Studies

424 West 33rd Street

Recapitalization of a 13-story, 198,000 square foot office property located 1 ½ blocks west of New York City’s Penn Station, subway lines (A, C, E, 1, 2, & 3), the PATH tubes and the Long Island Rail Road.
Proceeds from the recapitalization were utilized to retire the existing senior loan, renovation costs, reserves, closing costs, tenant improvements and leasing commissions.
The property was constructed in 1943, to house printing businesses. At investment inception the property was 55% leased to a family services agency (not-for-profit organization) with the remaining space being offered as above standard pre-built office space. All public areas including elevators and rest rooms were renovated.
The superior level of finish of the pre-built office space, for use by small to mid-sized tenants, generated significant interest in the market and the vacant space was quickly absorbed.
The initial term of the investment was three years, plus two one-year options to extend the term. Strategic Capital was redeemed after 2 ½ years through a new senior loan.
This transaction won the Real Estate Board of New York's Most Ingenious Deal of the Year Award.

Land acquisition and development for a mired 34-unit ski-in ski-out condominium townhome project located in Mountain Village, Telluride, Colorado.
Solid log construction with high end interior finish and garages. Spectacular unobstructed mountain views.
Residents can walk to shopping and services from the property as well as the Gondola that services downtown Telluride.
The initial term of the investment was three years. New sponsor successfully constructed and sold units and Strategic Capital was redeemed after two years through sponsor recapitalization of remaining unsold inventory.
Strategic Capital recognized a time sensitive opportunity and moved quickly, closing only two weeks after term sheet execution in order to meet seller's very tight time of the essence close date.

Acquisition of an existing 131,850 square foot Class B community shopping center in Carle Place, New York within Long Island’s dense Roosevelt Field Mall retail submarket.
The center was anchored by Big Lots, Party City and Staples.
The center was 88.2% leased with two vacancies at closing. The vacant space was leased and the property was sold within two years.
The existing long-term Lehman securitized loan was assumed. Despite senior loan covenants prohibiting subordinate debt, the servicer and special servicer, Midland, pre-approved Strategic Capital as a “Qualified Transferee” due to our proprietary preferred equity structure.
The initial term of the investment was three years. Strategic Capital was redeemed after only 1 ½ years when the property was sold.

Recapitalization of a 64,179 square foot uniquely situated office building and marina in Wayzata, Minnesota. Wayzata is situated 10 miles west of Minneapolis and is located on the north shore of Lake Minnetonka.
Wayzata is one of the oldest and most affluent Minneapolis lake cities, popular with prominent families and is the closest most accessible lake community to the CBD. Building demanded highest rent in Wayzata.
Proceeds from the recapitalization were used to retire a Lehman bridge loan on a separate portfolio of Class B office properties in Minneapolis.
The transaction was structured as a loan. A 1.46 million square foot class B office portfolio provided additional collateral for the loan.
Average size of an office tenant was less than 4,000 square feet.
The initial term of the investment was four years. Strategic Capital was redeemed after approximately two years from a new capital source.