119 West 40th Street, in the heart of
Manhattan's resurgent Bryant Park district.

The Wien & Malkin Strategic Capital program has acquired at discount a $22.25 million mezzanine loan secured by the sponsors' equity in a Midtown Manhattan office tower. The loan, purchased for $16.76 million, was co-funded by two Strategic Capital partnerships, together with funds advanced by the general partner on behalf of the newly launched Strategic Capital V.

"This is an example of how the credit contraction has created select opportunities to invest on favorable terms, in transactions that meet our stringent requirements for quality and attractive current distributions," says Ned H. Cohen, Executive Vice President of Wien & Malkin Securities Corp.

If the nine-year loan remains outstanding to maturity, it is projected to produce an approximate 10.6 percent overall return to the three participating partnerships, according to George S. Perry, Senior Vice President and Director of Investments for W&M Properties, which sources and structures investments for the Strategic Capital program. If the loan is repaid sooner, the return will be higher.

SC III invested approximately 41% of the required sum, with funds that had been returned to the partnership from the maturation of a prior investment.

SC IV invested about 19%, which represented its remaining funds available for initial investment.

SC V is investing about 40% of the sum required for the Manhattan mezzanine loan. This will be the first investment for the new fund, which is initially targeting an equity raise of $30 million - a sum that may be expanded to meet investor demand.

The property, at 119 West 40th Street, is a 333,000-square-foot building situated in the heart of the resurgent Bryant Park section of midtown Manhattan, a short distance from Times Square. The building is undergoing an extensive renovation and upgrading program, "which includes relocating the main entrance to the 41st Street side, close to the Verizon tower renovation and the new two-million-square-foot Bank of America Tower at One Bryant Park, which is nearing completion," says Mr. Perry.

He adds:
"This has become a neighborhood with great vitality, as Bryant Park has emerged in recent years as a focal point for business, social and cultural activities, including the highly visible fashion industry events. And the successful leasing programs at Verizon and Bank of America Tower confirm the new importance of this area. The experienced, very solid ownership of 119 West 40th Street is seizing the opportunity to give their property a larger and more valuable stake in this growth."

The property is owned by an investment group that includes prominent attorney/real estate investor Leon Charney; Fortis Real Estate and George Comfort & Sons, an 88-year-old New York real estate investment and management firm.

The Strategic Capital program, now in its seventh year, offers subordinate capital for real estate entrepreneurs who have special funding needs. Strategic Capital has consistently provided Wien & Malkin investors with attractive distributions.

Note: This is not an offering, which can only be made by private placement memorandum to qualified investors