A rendering of Miracle Place Market, opening in mid-2007. The property already is more than 90% pre-leased to national retailers.

    The investment, which has a term of two years and a two-year extension option for the project sponsor, will return a current yield to the partnership of 8% annually in the initial two years, and 10% in years three and four if the investment is extended. In addition, upon redemption, the partnership will receive an additional payment that raises the annual compounded rate of return to 15.75%.

    The shopping mall, which opened as Miracle Plaza in 1989, will undergo a $67 million redesign and modernization by its owner, Talisman Companies, L.L.C., of Coral Gables. When the 246,000- square-foot retail center reopens in mid-2007, it will be known as Miracle Place Market, with branded national tenants that include Marshall's, Bed Bath & Beyond, Office Max, PetSmart, DSW, Michaels Arts and Crafts, and Bally's Total Fitness Centers. The new center is more than 90% pre-leased.

    Talisman Companies has made shopping center redevelopment a specialty over the course of its 26-year history, with projects totaling more than seven million square feet nationwide. Fashion Outlets of Las Vegas, Towson Mall near Baltimore, and Brookdale Center in Coral Gables are among its high-profile re-developments.

    Miracle Place Market is a "big box" that will consist of three floors of high-ceiling retail space and two decks of covered parking. The property occupies the northern end of the Miracle Mile on Coral Way, greeting motorists heading into Coral Gables, an affluent Miami suburb adjacent to Coconut Grove.

    "This will be the gateway to the Miracle Mile," 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.

    "By providing supplemental capital to a long-established developer with a proven track record, in an economically strong region, Strategic Capital is helping to ensure the success of the venture while realizing a superior return. It's an excellent example of the type of opportunity for which Strategic Capital was created."

    Having also invested $2 million in December to help re-capitalize an office tower at 1370 Broadway in Manhattan, SC IV has committed nearly 80% of its original capital. As a result, the partnership expanded the investment by accepting additional subscriptions.