Square Mile Capital Management, the Manhattan-based distressed real estate fund, said today that USAA Real Estate has made a strategic investment in the firm.
Square Mile, while not releasing terms of the agreement, said that founders Jeff Citrin and Craig Solomon would retain a majority stake in the firm.
USAA Chairman and CEO Pat Duncan said the company has diversified its investments in recent years and hopes to offer its clients a wider variety of products with the investment.
In July 2011, USAA’s U.S. Republic Core Fund formed a joint venture with prior owners Broadway Partners and RXR Realty to recapitalize 340 Madison Avenue, a 750,000-square-foot office tower near Grand Central Terminal. The combined venture was able to get a 12-year mortgage financing agreement with Cornerstone Real Estate Advisors.
Square Mile, known best in New York for its extended legal fight with developer Kent Swig, has deployed more than $2 billion via three discretionary funds since it was founded in 2006. Square Mile has since launched a joint venture project with Taconic Investment to convert 837 Washington Street into a retail and office building.